PhonePe Moves Closer to UAE Launch With Central Bank Approval
Indian digital payments platform PhonePe has taken a significant step towards expanding overseas after receiving in-principle approval from the Central Bank of the UAE (CBUAE) for two payment licences. The approvals cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF), marking PhonePe’s first international regulatory milestone.
The approval comes after the company completed the initial regulatory due-diligence process. PhonePe will still need to secure final regulatory clearance before it can begin commercial operations in the UAE. Once approved, the company plans to work with local banks, licensed payment service providers and technology companies to establish its operations and connect with the country's payment infrastructure.
From UPI Acceptance to a Locally Regulated Business
PhonePe’s UAE plans represent a broader move beyond facilitating payments for Indian travellers. The company already participates in the UAE’s growing UPI-linked payment ecosystem, but its proposed local operation would allow it to build a more comprehensive, locally regulated payments business.
The UAE has emerged as an important overseas market for Indian digital payments, supported by strong economic and people-to-people ties between the two countries. PhonePe’s expansion could further connect India’s digital payments expertise with the UAE’s rapidly developing financial technology ecosystem.
Exploring Aani and Jaywan
PhonePe has also indicated that it will explore opportunities to support Aani, the UAE’s instant-payment platform, and Jaywan, the country’s domestic card scheme. These systems are becoming important components of the UAE’s digital payments infrastructure.
The UAE Ministry of Finance announced in August that Aani and Jaywan had been adopted as new payment channels for federal service fees and fines. The initiative is part of efforts to strengthen integration across the government payments ecosystem and accelerate digital transformation.
For PhonePe, working with these domestic payment rails could provide an opportunity to adapt its technology and experience to the UAE market while contributing to the country’s expanding cashless payments infrastructure.
PhonePe Brings Significant Scale
PhonePe enters this international expansion with a large established technology and user base in India. The company announced in April 2026 that it had crossed 700 million registered users, highlighting the scale it has achieved since its launch.
The company has also continued to expand its technology offerings in India. In 2026, PhonePe introduced features including biometric authentication for certain UPI transactions and an AI-powered integration layer designed to simplify payment gateway integration for merchants. These developments reflect the company's wider focus on technology-led payments and financial services.
UAE's Digital Economy Creates New Opportunities
PhonePe’s entry comes as the UAE continues to develop its digital financial infrastructure and regulatory framework. The country has been expanding instant payments, domestic card infrastructure and digital government services as part of its broader transformation of the financial ecosystem.
For PhonePe, the UAE could provide an important international platform to test how its technology and payments expertise can be adapted to a new regulatory and consumer environment. The company’s existing familiarity with digital payments in India may also provide a foundation for developing services suited to the needs of the UAE market.
A New Chapter for Indian Fintech
The UAE approval marks a new phase in PhonePe’s growth story. While the company has already built a large-scale digital payments network in India, establishing locally regulated operations abroad would represent a significant expansion of its business model.
The immediate focus will remain on completing the regulatory process and developing partnerships with UAE financial institutions and payment providers. If final approval is secured, the UAE will become PhonePe’s first overseas market with locally regulated operations, potentially providing the company with a foundation for further international expansion.
The MGMM Outlook
PhonePe’s in-principle approval from the UAE Central Bank for two payment licences marks a significant step in the international expansion of an Indian fintech company. The proposed entry would allow PhonePe to establish locally regulated operations in the UAE, moving beyond its existing role in facilitating payments for Indian travellers. Its potential engagement with the UAE’s Aani instant-payment platform and Jaywan domestic card scheme could also create opportunities for greater cooperation between India’s digital-payment expertise and the UAE’s rapidly developing financial infrastructure.
With more than 700 million registered users in India and continued investment in payment technology, PhonePe is taking its established digital capabilities to a new market. The UAE’s strong economic and people-to-people connections with India provide a natural environment for this expansion, while the company’s focus will now be on obtaining final regulatory clearance and building partnerships with local financial institutions and technology providers. The development highlights the growing international reach of India’s fintech ecosystem and the increasing role of Indian technology companies in global digital transformation.
(Sources: Moneycontrol, Firstpost, The Economic Times)
Comments