PhonePe Wins Initial UAE Approval for Digital Payments Launch

Indian payments platform PhonePe has received in-principle approval from the Central Bank of the UAE, marking a significant step toward launching digital payment services in the Emirates.

The approval covers two distinct licences: Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF). The Walmart-backed fintech called the authorisation a key milestone in its push beyond India.

The green light follows initial regulatory due diligence by the CBUAE. PhonePe must now complete additional requirements before receiving final authorisation to begin operations.

Once final approval is granted, PhonePe plans to work with regional banks, licenced payment service providers, and local technology vendors to establish its UAE presence.

The company also intends to explore integration opportunities with Aani and Jaywan, the UAE's domestic payment rails, leveraging its full-stack technology platform to support the country's payment infrastructure.

Ritesh Pai, CEO of PhonePe International Payments and executive director, emphasised the strategic importance of the UAE market.

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.

Pai positioned the expansion as supporting trade links between the UAE, India, and broader international markets.

PhonePe already serves Indian travellers visiting the UAE through a partnership with NPCI International Payments Limited. The collaboration enables users to pay at NEOPAY and Network International terminals across the Emirates using their PhonePe accounts.

Earlier this year, PhonePe paused its initial public offering plans amid geopolitical tensions in the Middle East.

The company had been preparing a share sale that could have raised up to $1.5bn, with valuations ranging from $9bn to $10.5bn.