A. SREENIVASA REDDY (ABU DHABI )
Indian digital payments company PhonePe has received in-principle approval from the Central Bank of the UAE (CBUAE) for two payment licences as it prepares to enter the UAE market.
The approval covers a Retail Payment Services and Card Schemes licence and a Stored Value Facilities licence, PhonePe said in a statement. It follows the completion of the initial regulatory due-diligence process.
PhonePe launched its payments application in 2016, allowing users to make mobile recharges, pay bills and transfer money through India’s Unified Payments Interface network.
The in-principle approval does not permit PhonePe to begin commercial operations in the UAE. The company said it was working with the authorities to complete the requirements for final approval ahead of its planned launch.
“The company’s proposed expansion into the Emirates is inspired by the nation’s forward-looking Financial Infrastructure Transformation programme, supported by a progressive regulatory framework and dynamic digital economy, making the UAE an ideal destination for its global growth,” the statement said.
Once it receives final approval, PhonePe plans to work with regional banks, licensed payment service providers and local technology companies.
The company also intends to explore opportunities to support Aani and Jaywan, the UAE’s domestic payment platforms, using its technology infrastructure.
PhonePe said its platform serves more than 700 million registered users and 50 million merchants in India.
“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.
“As the UAE advances towards an interconnected, digital-first economy, PhonePe aims to be a committed, long-term partner supporting its evolving ecosystem,” he added.
PhonePe already allows Indian travellers in the UAE to scan local QR codes and make payments at merchants served by NEOPAY and Network International. The service is offered in partnership with NPCI International Payments Limited under existing cross-border arrangements.
PhonePe’s principal promoter is WM Digital Commerce Holdings, an indirect Walmart entity. It held a 71.77% stake in PhonePe when the company filed its prospectus for an initial public offering (IPO). The proposed IPO, which was postponed in March 2026, was expected to value PhonePe at between $9 billion and $10.5 billion.
PhonePe’s Indian rival Paytm established Paytm Arab Payments in 2025 to expand its merchant-payments and financial-services technology business in the UAE.
In February 2026, Paytm completed the allotment of a 49% stake in the subsidiary to Abbar Global Opportunities Holdings, an investment vehicle of Emaar Properties founder Mohamed Alabbar.
Paytm retained the remaining 51%. The company has not subsequently announced the commencement of commercial operations by Paytm Arab Payments in the UAE.