PhonePe gets UAE central bank nod for two payment licences
Synopsis
PhonePe — which already handles payments for 700 million users in India — has just cleared a major regulatory hurdle in the UAE, winning in-principle approval for two licences from the Central Bank of the UAE. The move signals India's fintech ambitions are going global, with PhonePe aiming to plug into the UAE's own payment rails, Aani and Jaywan, as a long-term local partner rather than a mere cross-border service.
Key Takeaways
PhonePe has received in-principle approval from the Central Bank of the UAE for two payment licences.
The approvals cover Retail Payment Services and Card Schemes and Stored Value Facilities .
PhonePe serves over 700 million registered users and 50 million merchants in India.
The company plans to collaborate with Aani and Jaywan , the UAE's domestic payment platforms.
PhonePe already enables Indian travellers to pay via NEOPAY and Network International terminals in the UAE through NPCI International Payments Limited .
Final approval requires fulfilment of remaining regulatory requirements before an official UAE launch.
PhonePe, India's leading digital payments platform, has received in-principle approval from the Central Bank of the UAE for two payment licences, marking a significant milestone in the company's international expansion journey. The approvals, first reported by the Khaleej Times, cover Retail Payment Services and Card Schemes as well as Stored Value Facilities.
What the Approvals Cover
The dual-licence clearance positions PhonePe to establish its own regulated presence in the Emirates, rather than operating solely through existing cross-border arrangements. The company has completed initial regulatory due diligence and said it will continue working with UAE authorities to fulfil the remaining requirements needed to secure final approval before a formal launch.
Why PhonePe Chose the UAE
According to the company, the Emirates was selected for international expansion on the strength of the Financial Infrastructure Transformation (FIT) programme, a supportive regulatory framework, and the country's rapidly growing digital economy. Ritesh Pai, CEO and Executive Director of International Payments at PhonePe, said the firm aims to be a 'committed, long-term partner' as the UAE moves toward a 'digital-first economy.' He added that PhonePe plans to leverage its technology through local partnerships to support economic and trade links between the UAE, India, and international markets.
Integration with UAE's Domestic Platforms
PhonePe has indicated plans to enter collaborations supporting Aani and Jaywan — the UAE's own domestic payment platforms — using its existing technology infrastructure. The company said any deployment in the UAE would be 'designed to complement existing financial infrastructure and support payments for residents and businesses.'
PhonePe's Existing UAE Footprint
PhonePe is not entering the UAE from a standing start. It already collaborates with NPCI International Payments Limited to provide cross-border payment functionality in the Emirates through NEOPAY and Network International terminals. Indian travellers in the UAE can currently scan local QR codes to make instant payments across those terminals. The in-principle approval advances the company's longer-term goal of building a fully regulated local entity.
Scale and Ambition
PhonePe brings considerable transaction-handling experience to the table, serving more than 700 million registered users and 50 million merchants in India. The company said it aims to support the UAE's push toward a cashless economy while integrating its technology with the country's financial infrastructure. This comes amid a broader wave of Indian fintech firms seeking to internationalise, capitalising on India's global reputation for large-scale, low-cost digital payments architecture.
Point of View
Not just a remittance pipe. The company's stated intent to integrate with Aani and Jaywan — rather than compete with them — is a shrewd positioning move that mirrors how UPI internationalised in smaller markets. The risk is execution: regulatory approval is not market adoption, and the UAE's payments landscape is already competitive. Whether PhonePe can replicate its India dominance in a high-income, multi-currency market with very different consumer behaviour will be the real proof point.
NationPress
24 Sept 2026
Frequently Asked Questions
What licences has PhonePe received from the Central Bank of the UAE?
PhonePe has received in-principle approval from the Central Bank of the UAE for two licences: one covering Retail Payment Services and Card Schemes, and another covering Stored Value Facilities. These approvals are a precursor to a fully regulated operational launch in the Emirates.
What is the difference between in-principle approval and final approval?
In-principle approval signals that a regulator is satisfied with the applicant's initial due diligence and is willing to consider a full licence. PhonePe still needs to fulfil remaining regulatory requirements set by UAE authorities before it can secure final approval and begin operations.
Why is PhonePe expanding to the UAE?
PhonePe cited the UAE's Financial Infrastructure Transformation (FIT) programme, its supportive regulatory environment, and the country's fast-growing digital economy as key reasons for choosing the Emirates as its first major international market.
How does PhonePe currently operate in the UAE?
PhonePe already offers cross-border payment functionality in the UAE through a collaboration with NPCI International Payments Limited, allowing Indian travellers to scan local QR codes and pay via NEOPAY and Network International terminals. The new licences would allow PhonePe to build its own regulated presence beyond this arrangement.
Which UAE payment platforms will PhonePe work with?
PhonePe has indicated plans to collaborate with Aani and Jaywan, the UAE's domestic payment platforms, using its own technology infrastructure. The company said it wants to complement, rather than displace, the country's existing financial ecosystem.
