Indian digital payments company PhonePe has received in principle approval from the Central Bank of the United Arab Emirates for two payment licences, marking an important step in the company’s international expansion plans.
The approvals cover Retail Payment Services and Card Schemes and Stored Value Facilities. According to PhonePe, the approvals follow the completion of the initial regulatory due diligence process by the UAE central bank.
The latest development gives PhonePe a regulatory pathway towards establishing a locally regulated payments business in the UAE. However, the company has not yet received the final regulatory licence. PhonePe will need to complete the remaining regulatory requirements and secure final approval before it can begin commercial payment operations in the country.
PhonePe said that once final regulatory approval is obtained, it plans to work with regional banks, licensed payment service providers and local technology companies. The company intends to combine its technology platform with local partnerships as it develops its proposed UAE operations.
The company is also looking at opportunities to support the UAE’s domestic digital payment infrastructure. PhonePe said it plans to explore integration with Aani, the UAE’s instant payment platform, and Jaywan, the country’s domestic card scheme.
PhonePe’s move into the UAE represents a broader expansion beyond its existing cross border payment services for Indian travellers. Through its partnership with NPCI International Payments Limited, PhonePe already enables Indian users travelling in the UAE to make payments by scanning local QR codes at participating terminals operated through payment networks including NEOPAY and Network International.
The proposed expansion would allow PhonePe to move towards operating as a locally regulated payments company in the UAE, subject to final regulatory approval. The company said its expansion plans are aligned with the UAE’s Financial Infrastructure Transformation programme and the country’s wider focus on developing a digital economy.
Ritesh Pai, Chief Executive Officer and Executive Director of International Payments at PhonePe, said the company was honoured to receive the in principle approval from the Central Bank of the UAE. He said the UAE’s regulatory environment and focus on building an interconnected digital economy provide an important foundation for PhonePe’s international journey.
Pai also said PhonePe intends to combine its technology capabilities with local partnerships to support economic and trade connections between the UAE, India and global markets.
PhonePe launched its digital payments application in India in 2016 and has since built a large consumer and merchant network. The company said it had more than 720 million registered users as of August 2026 and a merchant acceptance network covering more than 50 million businesses in India.
The company’s services in India include consumer payments, merchant payments and other financial services. Its broader business interests also include lending and insurance distribution, the Share.Market investment platform and the Indus Appstore.
The UAE has become an important market for Indian digital payment companies because of its strong economic links with India, large Indian expatriate population and significant flow of Indian visitors. PhonePe already has a presence in the country through cross border payment arrangements, but the proposed locally regulated operation would represent a broader step in its international expansion.
The Central Bank of the UAE has stated that in principle approval should not be treated as final authorisation. Applicants receiving such approval must complete the requirements specified by the regulator before obtaining the final licence, and regulated activities cannot begin without the required licence.
PhonePe’s latest approval therefore represents a significant regulatory milestone, but the company’s commercial launch in the UAE will depend on receiving final approval from the Central Bank of the UAE.
If the final approval is granted, PhonePe is expected to build its UAE operations through partnerships with banks, payment service providers and technology companies while exploring connections with the country’s domestic payment infrastructure. The move would make the UAE PhonePe’s first international market for a locally regulated payments business.