PhonePe Wins In-Principle Approval From UAE Central Bank for First International Market
PhonePe has secured in-principle approval from the Central Bank of the UAE for two payment licences, its first step into an international market.
Indian digital payments platform PhonePe has secured in-principle approval from the Central Bank of the UAE (CBUAE), the first step towards launching payment services in its first international market.
The approval covers two licences, Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF), and follows completion of the regulator's initial due diligence, PhonePe announced on 22 September. It does not yet allow the company to operate: PhonePe must complete the remaining prerequisites and secure final approval before a commercial launch.
Once approved, PhonePe plans to work with regional banks, licensed payment service providers and local technology vendors. It also intends to explore supporting Aani and Jaywan, the UAE's domestic payment rails, using its full-stack technology platform. The company cites the UAE's Financial Infrastructure Transformation (FIT) programme as a factor behind the move.
"We are honoured to receive In-Principle Approval from the CBUAE," said Ritesh Pai, CEO and executive director, International Payments at PhonePe. "The country's vision and regulatory environment make it an ideal setting for our international journey. As the UAE advances toward an interconnected, digital-first economy, PhonePe aims to be a committed, long-term partner supporting its evolving ecosystem."
He added: "By combining world-class technology with local partnerships, PhonePe intends to support the strong economic and trade corridors connecting the UAE, India, and global markets, while striving to deliver elevated everyday payment experiences across the Emirates."
PhonePe arrives with considerable scale. It reports more than 700 million registered users and 50 million merchants in India, and says its platform is built to handle high transaction volumes. The company intends its UAE deployment to complement existing financial infrastructure rather than replace it.
Its UAE presence to date has been limited to Indian travellers, who can already scan local QR codes and pay at NEOPAY and Network International terminals through a partnership with NPCI International Payments Limited (NIPL). A domestic licence would allow PhonePe to serve UAE residents and merchants directly.
