PhonePe has secured in-principle approval from the Central Bank of the UAE (CBUAE), moving closer towards launching its digital payments services in the country.
In a statement, the Indian payments platform said the approval covers two licences: Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF). It described the authorisation as a “key milestone” in its international expansion journey.
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The decision follows initial regulatory due diligence and will enable PhonePe to work towards final authorisation before beginning operations.
Subject to final approval, the Walmart-backed fintech said it plans to partner with regional banks, licenced payment service providers and local technology vendors.
The company said it will also explore opportunities to support Aani and Jaywan, the UAE’s domestic payment rails, using its full-stack technology platform.
PhonePe International Payments CEO and executive director Ritesh Pai said: “We are honoured to receive In-Principle Approval from the CBUAE. The country’s vision and regulatory environment make it an ideal setting for our international journey.
“As the UAE advances toward an interconnected, digital-first economy, PhonePe aims to be a committed, long-term partner supporting its evolving ecosystem.
“By combining world-class technology with local partnerships, PhonePe intends to support the strong economic and trade corridors connecting the UAE, India, and global markets, while striving to deliver elevated everyday payment experiences across the Emirates.”
Separately, PhonePe already enables Indian travellers in the UAE to pay via NEOPAY and Network International terminals through its partnership with NPCI International Payments Limited (NIPL).
Earlier this year, PhonePe paused its initial public offering (IPO) plans amid geopolitical tensions in the Middle East.
The company had been preparing a share sale that could have raised up to $1.5bn, valuing the business at $9bn to $10.5bn.
