PhonePe Secures In-Principle Approval From UAE Central Bank for Two Payment Licences

PhonePe secures in-principle approval from UAE central bank for two payment licences

Digital payments firm PhonePe has secured In-Principle Approval (IPA) from the Central Bank of the UAE (CBUAE) for two payment licences — the Retail Payment Services and Card Schemes (RPSCS) licence and the Stored Value Facilities (SVF) licence — positioning the Indian fintech to establish a regulated payments presence in the UAE. The IPA follows what PhonePe described as "the successful completion of the initial regulatory due diligence" and clears a key regulatory hurdle as the company moves toward final approval to begin operations locally.

"Once it receives final regulatory approval, PhonePe plans to work with regional banks, licensed payment service providers and local technology vendors," the company said, adding its focus will be on "deeper ecosystem integration and supporting the UAE's vision of building a cashless economy."

PhonePe said the IPA allows it to proceed with steps required to secure full licences and to align its deployment with the UAE's financial infrastructure. The company flagged specific ambitions to explore integration with the UAE's domestic payment rails Aani and Jaywan, using its full-stack technology platform. Executives framed the move as a complement to existing infrastructure rather than a replacement, aimed at enabling seamless digital commerce for residents and enterprises.

• Licences granted in-principle: Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF).
• Regulator: Central Bank of the UAE (CBUAE).
• Cross-border activity already active through NPCI International Payments Limited (NIPL) partnerships, enabling Indian travellers to pay via NEOPAY and Network International terminals.
• Scale referenced: PhonePe's platform handles high transaction volumes in India where it serves "more than 700 million registered users and 50 million merchants" and elsewhere the firm cites "more than 72 crore life-till-date registered users and a digital payments acceptance network spread across more than 5 crore merchants."

PhonePe already operates cross-border payment services in the UAE via a partnership with NPCI International Payments Limited (NIPL). Through those arrangements, Indian travellers can scan local QR codes and make instant payments across NEOPAY and Network International terminals using PhonePe. The IPA provides a foundational regulatory foothold in the UAE; PhonePe emphasised that remaining prerequisites and final approvals are still required before commercial launch.

Beyond core digital payments, PhonePe highlighted the broader scope of its offerings it intends to bring to the market: consumer payments, merchant payments, lending, insurance distribution, and newer platforms such as share.market and Indus Appstore. The company said its proposed UAE deployment would leverage this full-stack approach and work with local banks, payment service providers and technology vendors to integrate services.

Outlook: The in-principle approvals mark a material step for PhonePe's international expansion strategy. With regulatory due diligence complete, the company must now satisfy remaining CBUAE requirements before final licences are issued and commercial operations commence. If final approval follows, PhonePe will shift to local partnerships and integration work — including potential support for Aani and Jaywan rails — while building on existing cross-border flows that already serve Indian customers in the UAE.

Reported by Shivani Solanki.