PhonePe has received In-Principle Approval (IPA) from the Central Bank of the UAE (CBUAE) for two payment-related licences, marking a key step towards launching its digital payments business in the country.
PhonePe has secured In-Principle Approval (IPA) from the Central Bank of the UAE (CBUAE) for Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF) licences.
The approval follows the completion of the initial regulatory due diligence and allows PhonePe to move ahead with the requirements needed to obtain final approval before beginning commercial operations in the UAE.
The move comes as PhonePe looks to expand its payments infrastructure beyond India and tap into the UAE’s growing digital economy. The company plans to build its presence through partnerships with regional banks, licensed payment providers and technology companies, subject to receiving the required regulatory clearances.
PhonePe also plans to explore opportunities around Aani and Jaywan, the UAE’s domestic payment rails, using its payments technology and infrastructure.
The company says its platform currently supports more than 700 million registered users and 50 million merchants in India, giving it experience in handling large-scale digital payment volumes.
PhonePe already has an India-UAE payments connection through its partnership with NPCI International Payments Limited (NIPL). Indian travellers in the UAE can use PhonePe to scan local QR codes and make payments across NEOPAY and Network International terminals through existing cross-border payment arrangements.
The latest approval does not yet allow PhonePe to begin operations as a licensed payment provider in the UAE. The company will need to complete the remaining regulatory requirements and secure final approval before its commercial launch.
Speaking on the foray into the UAE market, Ritesh Pai, CEO and Executive Director, International Payments at PhonePe, said: “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.”
He further added, “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.”
