PhonePe Secures UAE Payment License Approval
PhonePe has received in-principle approval from the Central Bank of the UAE for two payment licenses. The approval marks the fintech’s first international regulatory milestone.
The approvals cover Retail Payment Services and Card Schemes, or RPSCS, and Stored Value Facilities, or SVF. However, PhonePe still needs final regulatory approval before starting commercial operations.
The Bengaluru-based company announced the development on September 22, 2026. Meanwhile, the planned entry into the UAE would expand PhonePe beyond its existing cross-border UPI payment services.
PhonePe Targets UAE Payments Market
PhonePe plans to build a locally regulated payments business in the UAE. Therefore, the company will work with regional banks, licensed payment providers, and local technology companies after receiving final approval.
The company says the UAE’s Financial Infrastructure Transformation programme influenced its market strategy. In addition, PhonePe plans to explore opportunities involving Aani and Jaywan, the country’s domestic payment systems.
Aani operates as the UAE’s instant payments platform. Meanwhile, Jaywan serves as the country’s domestic card scheme. PhonePe intends to use its technology platform to explore support for both systems.
Ritesh Pai, CEO and Executive Director of International Payments at PhonePe, 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.”
He added that PhonePe intends to combine its technology with local partnerships. The company aims to support economic and trade links between the UAE, India, and global markets.
Existing UPI Presence Supports Expansion
PhonePe already operates in the UAE through an arrangement with NPCI International Payments Limited. Consequently, Indian travellers can use PhonePe to scan local QR codes and make payments at participating terminals.
The existing service works across NEOPAY and Network International terminals. However, those cross-border arrangements differ from the proposed locally regulated business. The new licenses would establish a broader operating framework in the UAE.
PhonePe said its technology platform currently serves more than 700 million registered users and 50 million merchants in India. Furthermore, the company plans to adapt that infrastructure for the UAE market.
The SVF license would support stored-value services, including digital wallets. Meanwhile, the RPSCS license covers regulated retail payment activities and card-scheme services under the CBUAE framework.
PhonePe has not announced a commercial launch date. Therefore, the company must first complete the remaining regulatory requirements and obtain final approval.
UAE Becomes PhonePe’s First Overseas Market
The UAE expansion represents PhonePe’s first international regulatory entry. As a result, the company will move from supporting Indian travellers abroad toward establishing a broader local payments operation.
The move also places PhonePe within an expanding UAE digital-payments ecosystem. Other international financial technology companies have pursued similar CBUAE licensing routes in recent years.
For PhonePe, local partnerships will form an important part of the proposed market strategy. In addition, integration with existing UAE payment infrastructure could connect its technology with domestic payment networks.
The company now continues discussions with UAE authorities before seeking final approval. Until that approval arrives, PhonePe cannot begin commercial payment operations under the proposed licenses.
If approved, the UAE operation would give PhonePe a regulated base for its international payments strategy. The company has yet to disclose a specific launch timeline or detailed commercial terms.
