PhonePe has received in-principle approval from the Central Bank of the UAE for two payment licences, marking its initial move into the Middle Eastern market and signalling potential regulatory presence in the region’s growing digital payments landscape.
PhonePe has taken its first formal step outside India after securing in-principle approval from the Central Bank of the UAE for two payment licences, a move that could eventually give the fintech a locally regulated presence in one of the Middle East’s most active digital payments markets.
The Bengaluru-based company said the approvals cover Retail Payment Services and Card Schemes, known as RPSCS, and Stored Value Facilities, or SVF. According to PhonePe, the decision follows initial regulatory due diligence and allows the company to work towards final approval before it can begin commercial operations. The group has not set a launch date, and it still needs the central bank’s final sign-off before it can trade in the country.
PhonePe’s push into the UAE is tied to the emirate’s broader financial modernisation drive. In its announcement, the company pointed to the UAE’s Financial Infrastructure Transformation programme and said it intends to build its business through partnerships with regional banks, licensed payment providers and local technology vendors. The firm also said it sees opportunities to connect with Aani, the country’s instant payments platform, and Jaywan, the domestic card scheme, using its own technology stack.
Ritesh Pai, PhonePe’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 the company’s overseas expansion. He said PhonePe plans to combine technology with local partnerships to support trade and commerce links between the UAE, India and wider global markets. PhonePe already operates in the UAE through an arrangement with NPCI International Payments, which lets Indian travellers scan local QR codes and pay at participating NEOPAY and Network International terminals, but that service is separate from the broader locally regulated business it now hopes to establish.
The new licences would mark a more substantial expansion than PhonePe’s current cross-border offering. The company said its platform already serves more than 700 million registered users and 50 million merchants in India, a scale it hopes to adapt for the Gulf market if it clears the remaining regulatory hurdles. For now, the UAE venture remains in the planning stage, with commercial terms and timing still to be disclosed.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
