Indian digital payments giant PhonePe has obtained in-principle approval from the UAE Central Bank to operate in the Gulf state, marking its first step towards international expansion amid the UAE’s push for a cashless economy.
PhonePe has won in-principle approval from the Central Bank of the UAE for two payment licences, a move that clears the way for the Indian digital payments group to pursue its first overseas market entry. The company said the approvals cover Retail Payment Services and Card Schemes, as well as Stored Value Facilities, and that it will now work towards final authorisation before launching operations.
The planned expansion fits with the UAE’s Financial Infrastructure Transformation programme, which is intended to deepen the country’s cashless payments ecosystem. PhonePe said it expects to collaborate with regional banks, licensed payment providers and local technology vendors, and that it may also support domestic payment rails including Aani and Jaywan once it receives the green light to begin business.
PhonePe is already a major force in India’s payments market, with more than 700 million registered users and 50 million merchants, according to the company. Its technology already handles large transaction volumes, and it has been building cross-border acceptance for Indian travellers in the UAE through a partnership with NPCI International Payments, allowing QR-code payments at NEOPAY and Network International terminals.
The approval marks an important regulatory milestone for the company, but it is still only an initial step. Final approval from the UAE central bank is still required before PhonePe can start commercial operations in the Gulf state, meaning the rollout will depend on further supervisory clearance and local partnerships.
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