PhonePe gets preliminary UAE nod for payment licences

BENGALURU: PhonePe has received in-principle approval from the Central Bank of the UAE for two payment licences, taking the Walmart-backed fintech a step closer to launching its first overseas business.The preliminary clearance covers licences for Retail Payment Services and Card Schemes and Stored Value Facilities. These would allow PhonePe to offer payment and stored-value products in the UAE after receiving final regulatory approval.PhonePe cannot begin commercial operations under the preliminary approval. The company will have to meet the central bank’s remaining requirements before securing the final licences. It did not disclose a timeline for the launch.Once approved, PhonePe plans to work with banks, licensed payment service providers and technology companies in the UAE. It also intends to explore supporting Aani and Jaywan, the country’s domestic payment systems, through its technology platform.“The country’s vision and regulatory environment make it an ideal setting for our international journey,” said Ritesh Pai, CEO and executive director of international payments at PhonePe. He added that the company would combine its technology with local partnerships in the market.PhonePe already offers limited payment access in the UAE to Indian users through an arrangement with NPCI International Payments Limited. Indian travellers can use the PhonePe app to scan local QR codes and make payments at merchants connected to NEOPAY and Network International.The proposed UAE business would go beyond this cross-border payment arrangement by giving PhonePe a regulated presence in the country.PhonePe was launched in India in 2016. As of August 2026, it had more than 72 crore registered users and a payment acceptance network covering over 5 crore merchants, according to the company. Apart from consumer and merchant payments, PhonePe operates businesses in lending and insurance distribution. Its other platforms include stockbroking and mutual fund app Share.Market and Android app marketplace Indus Appstore.Get the latest Business News and Live updates. Download the TOI app.