PhonePe advances towards its first regulated move outside India after receiving in-principle approval from the Central Bank of the UAE for two payment licences, signalling a significant step in its global growth strategy.
PhonePe has received in-principle approval from the Central Bank of the UAE for two payment licences, taking the Indian digital payments group a step closer to what would be its first regulated move outside its home market. According to the company and reports carried by Indian business publications, the approval covers Retail Payment Services and Card Schemes, or RPSCS, and Stored Value Facilities, or SVF, but PhonePe still needs final authorisation before it can start commercial operations in the Emirates.
The company said the nod follows initial regulatory due diligence and reflects the next stage in a longer approval process. In a statement, PhonePe said it expects to work with regional banks, licensed payment service providers and local technology vendors once it receives final clearance. The firm also said it wants to support the UAE’s cashless economy plans and complement the country’s existing financial infrastructure rather than operate in isolation.
PhonePe is also signalling interest in the UAE’s domestic payment rails, including Aani and Jaywan. Ritesh Pai, the company’s chief executive and executive director for international payments, said the approval was an honour and described the UAE’s regulatory environment as well suited to PhonePe’s international ambitions. He added that the company wants to help strengthen commercial and trade links between the UAE, India and wider global markets.
The approval comes as PhonePe continues to grow at scale in India, where it says it serves more than 700 million registered users and 50 million merchants. The company already has a cross-border payment arrangement in the UAE through its partnership with NPCI International Payments, which allows Indian travellers to pay by scanning local QR codes at NEOPAY and Network International terminals. That existing tie-up gives PhonePe a foothold in the market, but the new licences would be needed before it can operate as a fully regulated payments provider in the country.
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