Digital payments platform PhonePe announced on Tuesday that it has received in-principle approval from the UAE central bank for two licenses covering retail payment services, card schemes, and stored value facilities. According to reports from Zee News, this marks PhonePe's first regulatory approval outside India, representing a historic milestone for the Walmart-backed fintech firm. The approvals were granted after the UAE central bank completed its initial regulatory due diligence, with the company still needing final central bank sign-off before it can begin commercial operations in the Gulf state. Speaking on the foray into the UAE market, Ritesh Pai, CEO and Executive Director, International Payments at PhonePe, expressed gratitude for receiving In-Principle Approval from the CBUAE, highlighting the country's vision and regulatory environment as ideal for their international journey. As per Mint, Pai emphasized that "As the UAE advances toward an interconnected, digital-first economy, PhonePe aims to be a committed, long-term partner supporting its evolving ecosystem."
As part of its UAE expansion strategy, PhonePe plans to differentiate itself by building use cases on top of the UAE's existing digital payment infrastructure. According to Zee News, Pai emphasized that the company will play to its core strengths, leveraging experience building use cases on top of digital public infrastructure and domestic payment ecosystems. The CEO highlighted that PhonePe's experience with UPI could help it develop solutions across different segments of the UAE market, drawing parallels to how UPI has successfully proliferated from enterprise clients to small stores. As per Mint, the company's proposed expansion will be supported by the country's Financial Infrastructure Transformation (FIT) program, with PhonePe intending for its deployment to "complement existing financial infrastructure and support seamless commerce for residents and enterprises." The company does not intend to operate in isolation and will work with the UAE central bank, federally regulated banks, fintech companies and technology providers to develop payment solutions for merchants and consumers.
The approved licenses encompass Retail Payment Services and Card Schemes (RPSCS) as well as Stored Value Facilities (SVF), as reported by Zee News. This comprehensive approval framework positions PhonePe to offer a complete range of digital payment solutions to customers in the UAE market, enabling the company to establish locally licensed operations in the Gulf state. The licenses cover essential payment infrastructure including retail payment systems, card processing networks, and digital wallet services. While In-Principle Approval establishes PhonePe's foundational regulatory presence, the company still needs final central bank sign-off before it can begin commercial operations in the UAE. The approvals are specifically for Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF). The approval follows initial regulatory due diligence, with the company continuing to work hand-in-hand with authorities to complete all pre-requisites for final approval.
As part of its comprehensive UAE strategy, PhonePe plans to explore opportunities to support the UAE's domestic payment rails, Aani and Jaywan, through its technology platform. According to Upstox News Desk, this integration strategy aligns with the company's commitment to work with regional banks, licensed payment service providers and local technology vendors to expand digital payments in the country. The company's proposed expansion is specifically in line with the UAE's Financial Infrastructure Transformation (FIT) programme and the country's push towards a digital economy. This domestic integration approach complements PhonePe's existing cross-border arrangements, as the company currently enables Indian travellers in the UAE to make payments by scanning local QR codes across NEOPAY and Network International terminals through existing cross-border arrangements in partnership with NPCI International Payments Limited (NIPL).
As part of its market strategy, PhonePe currently enables Indian travellers in the UAE to scan local QR codes and pay instantly across NEOPAY and Network International terminals via existing cross-border arrangements in partnership with NPCI International Payments Limited (NIPL). According to Zee News, the company is also looking at ways to support the UAE's domestic payment networks, including Aani and Jaywan, using its technology platform. Following final regulatory approval, PhonePe plans to work with regional banks, licensed payment service providers and local technology companies to support the UAE's cashless economy. The company said its planned UAE operations are intended to work alongside the country's existing financial system and support digital payments for both consumers and businesses. As per Mint, the company will focus on deep ecosystem integration and collaborating with regional banks, licensed payment service providers, and local technology vendors to actively advance the cashless economy vision in the UAE. The UAE could also serve as a test market for its international payments ambitions for the Walmart-backed fintech firm, which has over 700 million registered users and 50 million merchants in India.
PhonePe Limited (formerly PhonePe Private Limited) is a technology company that builds digital platforms for Payments, Digital Distribution Services and Financial Services, headquartered in India. The PhonePe digital payments app was launched in 2016 and as of August 2026, PhonePe has over 72 crore life-till-date registered users and a digital payments acceptance network spread across over 5 crore merchants. The company's products and services include Consumer Payments (including Digital Distribution Services), Merchant Payments, Lending and Insurance Distribution services, and New Platforms, which comprise Share.Market (stock broking and mutual funds distribution platform), and Indus Appstore (Android-based mobile app marketplace). The Walmart-backed fintech firm offers a payments application that lets users recharge, pay bills, and send money using India's Unified Payments Interface network. PhonePe's UAE expansion comes as the company prepares to revive plans for an initial public offering (IPO) that were put on hold earlier this year because of geopolitical uncertainty and volatile global market conditions. The company has said it plans to restart the listing process once market conditions stabilise, with the company targeting a valuation of $9 billion to $10.5 billion in the IPO.
