PhonePe Receives In-Principle Approval for UAE Payments Business
Walmart-backed PhonePe has secured in-principle approval from the Central Bank of the UAE for two payment licenses. This marks a step closer to the company's first regulated payment operation outside India.
Walmart-backed PhonePe has received in-principle approval from the Central Bank of the UAE (CBUAE) for two payment licenses. These approvals, covering Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF), bring the fintech major closer to launching its first locally regulated payment operation outside India.
While in-principle approvals have been granted, PhonePe cannot immediately commence commercial operations. The company must fulfill remaining regulatory requirements and secure final approval from the CBUAE. Following final approval, PhonePe plans to collaborate with regional banks, licensed payment service providers, and local technology vendors in the UAE.
The company will also explore opportunities to support domestic payment networks, such as Aani and Jaywan, utilizing its technology platform. This expansion represents PhonePe's first international foray involving domestic business operations.
PhonePe has been preparing for international expansion. It incorporated PhonePe International Holdings Ltd in Abu Dhabi in September 2025. While PhonePe already enables UPI payments for Indian travelers in the UAE via local QR codes, the new licenses will allow for the establishment of a domestic payment infrastructure within the country.