PhonePe, a leading Indian payment services company, has received in-principle approval from the Central Bank of the UAE (CBUAE) for two payment licences. This marks the company's first international regulatory approval and paves the way for its entry into the UAE market. The approvals cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF).
The in-principle approval follows the completion of the initial regulatory due diligence by the CBUAE. PhonePe's CEO and Executive Director, International Payments, Ritesh Pai, expressed his honour in receiving the approval, citing the UAE's vision and regulatory environment as an ideal setting for the company's international journey.
With the in-principle 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 also aims to explore opportunities to support the UAE's domestic payment systems, including Aani and Jaywan, through its technology platform.
PhonePe's technology platform is designed to handle high transaction volumes and is currently used by over 700 million registered users and 50 million merchants in India. The company's proposed operations in the UAE will complement the country's existing financial infrastructure and support digital payments for residents and businesses.
PhonePe's expansion plans align with the UAE's Financial Infrastructure Transformation (FIT) programme and its broader digital economy agenda. The company intends to support the strong economic and trade corridors connecting the UAE, India, and global markets, while delivering elevated everyday payment experiences across the Emirates.
PhonePe already has a cross-border payments presence in the UAE for Indian travellers, enabling them to scan local QR codes and make payments at NEOPAY and Network International terminals. The in-principle approval provides PhonePe with a regulatory foundation in the UAE as it works with authorities to complete the remaining requirements for final approval before a commercial launch.
The company's entry into the UAE market is expected to enhance its presence in the Middle East and provide new opportunities for growth. PhonePe's foray into the UAE is part of its strategy to expand its services beyond India and establish itself as a leading player in the global digital payments landscape.
Key points
- PhonePe receives in-principle approval from Central Bank of UAE for two payment licences
- The approvals cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF)
- PhonePe plans to work with regional banks and payment service providers to support UAE's cashless economy
