Digital payments platform PhonePe has secured In-Principle Approval (IPA) from the Central Bank of the UAE (CBUAE) for two payment licences, marking a key step in the company’s plans to establish its regulated payments presence in the UAE.
The approval covers the Retail Payment Services and Card Schemes (RPSCS) licence and the Stored Value Facilities (SVF) licence. The IPA follows the successful completion of the initial regulatory due diligence and allows PhonePe to move towards securing final approval to commence business operations in the UAE.
PhonePe Plans to Build Local Payments Ecosystem
Once it receives final regulatory approval, PhonePe plans to work with regional banks, licensed payment service providers and local technology vendors.
The company said its focus will be on deeper ecosystem integration and supporting the UAE’s vision of building a cashless economy. PhonePe also plans to explore opportunities to support Aani and Jaywan, the UAE’s domestic payment rails, using its full-stack technology platform.
PhonePe’s technology architecture currently handles high transaction volumes in India, where the company serves more than 700 million registered users and 50 million merchants.
The company said its proposed UAE deployment is intended to complement the country’s existing financial infrastructure and enable seamless digital commerce for residents and enterprises.
Existing Cross-Border Payments Presence
PhonePe already enables Indian travellers in the UAE to make digital payments through its partnership with NPCI International Payments Limited (NIPL).
Through existing cross-border arrangements, Indian travellers can scan local QR codes and make instant payments across NEOPAY and Network International terminals using PhonePe.
The latest IPA provides PhonePe with a foundational regulatory presence in the UAE. However, the company will continue working with the relevant authorities to complete the remaining prerequisites before receiving final approval and launching its commercial operations.
PhonePe’s Expanding Digital Payments Business
PhonePe said it has more than 72 crore life-till-date registered users and a digital payments acceptance network spread across more than 5 crore merchants.
Beyond digital payments, the company’s offerings include consumer payments, merchant payments, lending and insurance distribution services. Its newer platforms include share.market and Indus Appstore.
The UAE regulatory approval marks another step in PhonePe’s efforts to take its payments technology and broader financial services ecosystem beyond India, while its proposed local operations remain subject to final regulatory approval.
-By Shivani Solanki
