PhonePe secures preliminary approval from the UAE Central Bank for two payment licences, marking its first regulatory move outside India and paving the way for its expansion into the Gulf’s competitive digital payments landscape.
PhonePe has received in-principle approval from the Central Bank of the UAE for two payment licences, marking its first regulatory step outside India and opening the door to a possible expansion into one of the Gulf’s most competitive digital payments markets. The approval covers Retail Payment Services and Card Schemes, alongside Stored Value Facilities, according to the company and reports in Business Standard and other Indian media.
The company said the nod follows initial regulatory due diligence and allows it to continue towards final authorisation before it can begin operations in the Emirates. PhonePe said it intends to deepen its presence in the UAE’s digital economy and work with regional banks, licensed payment firms and local technology vendors once it clears the remaining approval stage.
The move is strategically important because the UAE is building out its own domestic payments infrastructure. Business Standard reported that PhonePe is looking at opportunities tied to Aani, the country’s instant payment network, and Jaywan, its domestic card scheme. That would mirror the company’s role in India, where it operates on the Unified Payments Interface, a state-backed system that has become central to retail digital payments.
For PhonePe, the UAE approval is more than a routine compliance milestone. It signals that the fintech group, launched in 2016 and backed by Walmart, is preparing to turn its large Indian-scale payments model into an international business. Final launch plans still depend on the central bank’s full sign-off, but the initial approval gives the company a foothold in a market where cross-border commerce, expatriate remittances and government-led digital infrastructure all create potential demand for low-cost payment services.
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