PhonePe, which serves over 700 million registered users and 50 million merchants in India, has received in-principle approval from the Central Bank of the UAE for two licence categories: Retail Payment Services and Card Schemes, and Stored Value Facilities.
The approval follows an initial regulatory due diligence process and allows the company to work toward final clearance before launching commercial operations in the UAE.
The Indian fintech said its UAE push is shaped by the country’s Financial Infrastructure Transformation programme and its broader digital economy ambitions.
If final approval comes through, PhonePe intends to partner with regional banks, licensed payment providers, and local technology vendors. The company also said it plans to explore integration with Aani and Jaywan, the UAE’s domestic payment rails.
“We are honoured to receive In-Principle Approval from the CBUAE. The country’s vision and regulatory environment make it an ideal setting for our international journey. As the UAE advances toward an interconnected, digital-first economy, PhonePe aims to be a committed, long-term partner supporting its evolving ecosystem. By combining world-class technology with local partnerships, PhonePe intends to support the strong economic and trade corridors connecting the UAE, India, and global markets, while striving to deliver elevated everyday payment experiences across the Emirates,” Ritesh Pai, CEO and Executive Director, International Payments at PhonePe said in a statement.
PhonePe already has a limited UAE footprint. In partnership with NPCI International Payments Limited, the platform currently lets Indian travellers scan local QR codes and pay at NEOPAY and Network International terminals through existing cross-border arrangements.
The in-principle approval would form the basis for a broader, locally licensed operation.
The company said it is continuing to work with authorities to complete the remaining pre-requisites for full approval ahead of any commercial launch.
