PhonePe secured in-principle approval from the Central Bank of the UAE for two payments licences, marking the Indian company’s first planned operating presence outside its home market. The approvals cover Retail Payment Services and Card Schemes, and Stored Value Facilities. PhonePe said the initial regulatory due-diligence stage had been completed. Final approval is still required before the company can begin commercial operations in the Emirates.
The company disclosed the decision on 22 September, and Reuters separately reported the approvals and their conditional status. PhonePe described the UAE as the first step in an international expansion strategy rather than an immediate product launch. The group, which is majority-owned by Walmart, operates one of India’s largest digital-payments platforms.
LOCAL INFRASTRUCTURE AND PARTNERSHIPS
PhonePe said it intends to work with regional banks, licensed payment-service providers and local technology companies after receiving final clearance. It will also explore support for Aani and Jaywan, the UAE’s domestic instant-payment and card systems. Those plans remain prospective and depend on the completion of regulatory requirements.
The company already enables Indian travellers to make QR-code payments in the UAE through arrangements involving NPCI International Payments, NEOPAY and Network International. A domestic licence would be a different step, allowing PhonePe to build services for UAE residents and merchants rather than only supporting visiting Indian users. PhonePe said its Indian platform serves more than 700 million registered users and 50 million merchants.
FINAL AUTHORISATION REMAINS THE NEXT TEST
The two in-principle approvals do not authorise a commercial launch. PhonePe must satisfy the central bank’s remaining conditions before it can offer the regulated services, and it has not announced a launch date. The distinction is important because the approved categories cover both payment-service activity and stored-value products.
The next material milestone will be the Central Bank of the UAE’s final decision after PhonePe completes the outstanding prerequisites. If approval is granted, the company’s integration choices and banking partnerships will determine how quickly it can connect with local payment rails. Until then, the development establishes a regulatory foothold but not an operating business.