PhonePe gets in-principle nod from UAE central bank for payment, stored value licences

Digital payments platform PhonePe has secured in-principle approval from the central bank of the UAE for two licences, marking its first international market entry.

The company has received in-principle approval for the Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF) licences, PhonePe said in a statement on Tuesday.

The approval follows the completion of initial regulatory due diligence and will allow PhonePe to work towards obtaining final regulatory approval to commence commercial operations in the UAE.

PhonePe said its proposed expansion is in line with the UAE's Financial Infrastructure Transformation (FIT) programme and the country's push towards a digital economy.

The company plans to work with regional banks, licensed payment service providers and local technology vendors to expand digital payments in the country.

PhonePe also intends to explore opportunities to support the UAE's domestic payment rails, Aani and Jaywan, through its technology platform.

The company said its platform currently serves more than 700 million registered users and 50 million merchants in India and is designed to handle high transaction volumes.

"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," Ritesh Pai, CEO and Executive Director, International Payments at PhonePe, said.

PhonePe said it currently enables Indian travellers in the UAE to make payments by scanning local QR codes across NEOPAY and Network International terminals through existing cross-border arrangements in partnership with NPCI International Payments Limited (NIPL).

The company said the in-principle approval establishes its regulatory presence in the UAE, while it continues to work with authorities to complete requirements for final approval before launching commercial operations.

PhonePe, which was launched in India in 2016, said it had more than 72 crore registered users and a digital payments acceptance network covering over 5 crore merchants as of August 2026.