PhonePe has successfully obtained a preliminary license from the Central Bank of the United Arab Emirates (CBUAE) for two payment licenses, marking the company's first international approval and paving the way for its entry into the UAE market.
Details of the Licenses
The obtained licenses include Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF). These approvals were issued after the completion of the initial regulatory review processes by the Central Bank of the UAE.
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PhonePe's Role in the UAE Economy
Ritesh Pai, CEO and Head of International Payments at PhonePe, expressed his satisfaction with receiving this license, emphasizing that the vision and regulatory environment of the UAE make it an ideal location for the company's international journey. After receiving the final approval, PhonePe intends to collaborate with regional banks, licensed payment service providers, and local technology companies to support the cashless economy of the UAE.
The company has also planned to explore opportunities to support the UAE's domestic payment systems, including Aani and Jaywan, through its technology platform. PhonePe's technology platform is designed to handle high transaction volumes and currently serves over 700 million registered users and 50 million merchants in India.
PhonePe's proposed operations in the UAE will complement the country's existing financial infrastructure and support digital payments for residents and businesses. The company's expansion plans align with the UAE's Financial Infrastructure Transformation (FIT) program and the broader digital economy agenda of the country.
Pai also noted that by combining advanced technologies and local partnerships, PhonePe aims to support strong economic and trade corridors between the UAE, India, and global markets, enhancing everyday payment experiences across the UAE.
PhonePe has already begun its presence in cross-border payments for Indian travelers in the UAE. The company, in collaboration with NPCI International Payments Limited (NIPL), enables Indian travelers to scan local QR codes and make their payments at NEOPAY and Network International terminals through existing arrangements.
The preliminary approval provides PhonePe with a regulatory foundation in the UAE while the company collaborates with authorities to complete the remaining requirements for final approval ahead of commercial launch.
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