Industry Odisha Bureau, Sep 22: PhonePe has received in-principle approval for two UAE payment licences. The Central Bank of the UAE granted preliminary clearance. This marks PhonePe’s first international market entry, though final approval remains pending.
CBUAE Approvals Open PhonePe’s UAE Expansion Path
The two approvals cover distinct activities. One relates to Retail Payment Services and Card Schemes, known as RPSCS. The other covers Stored Value Facilities, or SVF. Both approvals follow completed initial regulatory due diligence. They remain in-principle only, not final licences.
Final Clearance Remains Before Commercial Launch
PhonePe cannot yet begin commercial UAE operations. The company must secure final regulatory approval first. PhonePe confirmed this requirement in a statement on Tuesday. Until then, proposed UAE operations stay in planning stages.
Aani and Jaywan Enter PhonePe’s UAE Strategy
PhonePe plans further steps after receiving final clearance. It intends to work with regional banks. Licensed payment service providers are also part of those plans. Local technology companies could become partners too. Separately, PhonePe plans to explore supporting Aani and Jaywan. These are the UAE’s domestic payment rails. The company would explore this through its existing technology platform. No integration has been confirmed at this stage.
India Scale Supports First Overseas Expansion
PhonePe cited its domestic footprint alongside the UAE plans. The company says its platform serves over 700 million registered users. It also reports around 50 million merchants in India. PhonePe said its proposed UAE operations would complement existing financial infrastructure there. It linked the expansion to the UAE’s Financial Infrastructure Transformation programme and its cashless-economy ambitions.
Ritesh Pai, CEO and executive director, International Payments at PhonePe, commented on the approval. He described the UAE’s regulatory environment as suited to international expansion, according to the company statement.
Cross-Border Payments Already Provide UAE Link
PhonePe’s UAE connection is not entirely new. The company already works with NPCI International Payments Limited. That arrangement lets Indian travellers scan local QR codes in the UAE. Payments can run through NEOPAY terminals. Network International terminals also support these transactions. This existing service is separate from PhonePe’s proposed licensed operations. It does not represent commercial UAE market entry.
Regulatory Approval Defines Next Step
PhonePe said it continues working with UAE authorities. Remaining requirements must be completed before final approval. Only then will commercial operations begin. The company positioned this UAE move within broader India-UAE payment and trade links, without detailing specific figures.
For now, PhonePe’s UAE plans rest on regulatory groundwork. The in-principle approvals signal progress toward its first international market. Final clearance, partnerships and any Aani or Jaywan integration remain steps still to come.
