PhonePe Enters UAE
PhonePe has received in-principle approval from the Central Bank of the UAE for two payment licences. This marks the fintech’s first international regulatory footprint. The approvals cover Retail Payment Services and Card Schemes, along with Stored Value Facilities. PhonePe must secure final approval before beginning commercial operations in the country.
Beyond UPI Payments
PhonePe already enables Indian travellers in the UAE to make UPI payments by scanning local QR codes. Its proposed expansion could move the company beyond cross-border transactions towards a locally regulated payments business, allowing it to participate more directly in the UAE’s digital financial ecosystem after receiving final regulatory clearance.
Two Key Licences
The first approval covers Retail Payment Services and Card Schemes, while the second covers Stored Value Facilities. These licences form the regulatory foundation for PhonePe’s planned UAE operations. However, the current in-principle approval does not permit commercial operations. The company must complete remaining requirements before launching services.
Focus On Aani And Jaywan
PhonePe plans to explore opportunities to support Aani, the UAE’s instant-payment platform, and Jaywan, the country’s domestic card scheme. The company says it will use its technology platform while working with local financial institutions and payment providers. This could connect its technology with existing UAE payment infrastructure.
Local Partnerships Ahead
After final approval, PhonePe plans to collaborate with regional banks, licensed payment service providers and local technology companies. This approach would allow the fintech to build its UAE operations around existing financial infrastructure instead of operating separately. The company says local partnerships will support its proposed payments ecosystem.
Existing UAE Presence
PhonePe is not starting from zero in the UAE. Through NPCI International Payments, Indian travellers can already use the platform to scan local QR codes and make payments at participating NEOPAY and Network International terminals. The new licences would expand this existing cross-border presence into broader regulated operations.
What It Means
PhonePe’s UAE expansion could broaden its international payments strategy while connecting India-linked commerce with the UAE’s digital ecosystem. The company says its platform serves more than 700 million registered users and 50 million merchants in India. The UAE would become its first international market after final regulatory approval.