PhonePe has moved closer to establishing its first regulated overseas payments business after receiving in-principle approval from the Central Bank of the UAE (CBUAE) for two payment licences, Reuters reported.
The Bengaluru-based fintech company said the approval marks an important step in its international expansion plans.
PhonePe prepares for UAE payments launch
The company has completed the initial regulatory review process and will require final approval from the UAE regulator before beginning commercial operations. The licences cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF).
“The country’s vision and regulatory environment make it an ideal setting for our international journey. By combining technology with local partnerships, PhonePe intends to support the strong economic and trade corridors connecting the UAE, India, and global markets,” said Ritesh Pai, CEO and executive director of International Payments at PhonePe.
PhonePe already enables UPI-based payments in the UAE through its collaboration with NPCI International Payments Limited (NIPL). Indian travellers can use PhonePe to scan local QR codes and make payments through NEOPAY and Network International terminals.
Fintech giant expands global ambitions
The latest move will allow PhonePe to go beyond facilitating UPI transactions and develop a locally regulated payments platform in the UAE. The company plans to collaborate with UAE banks, licensed payment service providers and technology firms to integrate with the country’s payments ecosystem.
PhonePe is India’s largest UPI platform, holding over 45% market share and processing nearly 12 billion transactions monthly, valued at around ₹14 lakh crore. The company has more than 700 million registered users and 50 million merchants.
The UAE has become a significant overseas market for UPI due to its large Indian community and high volume of Indian visitors. PhonePe also plans to explore opportunities involving the UAE’s instant payment platform Aani and domestic card network Jaywan.
The company said the UAE’s digital economy push and Financial Infrastructure Transformation programme were among the factors behind its decision to enter the market. The country could serve as a key testing ground for PhonePe’s broader international payments strategy.
