PhonePe Gets In-Principle Approval for Two UAE Payment Licences

Indian digital payments company PhonePe has received In-Principle Approval (IPA) from the Central Bank of the UAE (CBUAE) for two payment licences, marking its first international regulatory approval as it prepares to establish a locally regulated payments business in the Emirates.

The approvals cover the Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF) licences. PhonePe said the IPA follows the completion of the CBUAE’s initial regulatory due diligence and allows the company to work towards final approval before starting commercial operations.

The development follows PhonePe co-founder and CEO Sameer Nigam’s announcement earlier this month that the UAE would be the company’s first foreign market. At the Global Fintech Fest on September 9, Nigam said the licences would enable PhonePe to offer consumer payment products such as wallets and gift cards, along with merchant acquiring and other local payment services. He also indicated potential use cases for remittances between the UAE and India.

Once it receives final regulatory clearance, PhonePe plans to work with regional banks, licensed payment service providers and local technology vendors. The company said its strategy is to integrate with the UAE’s existing financial infrastructure rather than build a closed payment ecosystem.

PhonePe also plans to explore opportunities to support Aani and Jaywan, the UAE’s domestic payment rails, through its technology platform. Aani is the country’s instant-payment platform, while Jaywan is its national domestic card scheme. PhonePe has not announced a confirmed commercial integration with either system yet.

The proposed UAE business would expand PhonePe’s role beyond its existing cross-border payment services. Through a partnership with NPCI International Payments Limited (NIPL), Indian travellers in the UAE can already use PhonePe to scan eligible local QR codes and make payments at merchants connected to NEOPAY and Network International. These transactions operate through existing cross-border arrangements and are separate from the locally regulated business PhonePe is now seeking to establish.

As of August 2026, PhonePe said it had more than 72 crore registered users and a digital payments acceptance network covering more than 5 crore merchants in India. Its businesses include consumer and merchant payments, lending and insurance distribution, as well as Share.Market and Indus Appstore.

PhonePe said its UAE expansion is aligned with the country’s Financial Infrastructure Transformation (FIT) programme, which is aimed at developing an interconnected digital financial infrastructure. The company said it intends to use its payments technology to support commerce links between the UAE, India and other markets.

PhonePe is entering a UAE payments market where other international fintech companies have also been seeking regulatory approval. Ant International received in-principle approval for the same two licence categories in 2025, while Revolut received UAE payment licences in June 2026.

For now, the IPA does not allow PhonePe to begin full commercial operations in the UAE. The company will need to complete the remaining regulatory requirements and obtain final authorisation before launching its locally regulated services.