PhonePe Secures Central Bank Approval for UAE Payment Licences

22 Sep 2026, 09:28 by Vinay Kakkad · KalingaTV

The Central Bank of the UAE (CBUAE) has granted in-principle authorization for two payment licences to PhonePe, clearing an initial path for the Indian fintech firm to roll out commercial operations in the United Arab Emirates.

The preliminary clearances cover Stored Value Facilities (SVF) alongside Retail Payment Services and Card Schemes (RPSCS). Announced by the Bengaluru-headquartered company on Tuesday, September 22, the move represents its debut regulatory clearance beyond India, following the completion of early-stage regulatory due diligence by the Emirati banking authority.

PhonePe intends to anchor its planned services in the Gulf state’s broader digital finance roadmap. The company noted that its expansion strategy corresponds directly with the UAE’s digital economy goals and its Financial Infrastructure Transformation (FIT) programme. Once authorities grant final regulatory sanction, the enterprise plans to form alliances with area lenders, certified payment service firms, and domestic technology providers to advance the host nation’s transition away from cash.

Technological collaboration forms another central piece of the planned rollout. PhonePe intends to investigate avenues to connect its proprietary architecture with the UAE’s national networks, specifically the Aani and Jaywan payment platforms. The firm highlighted that its underlying systems already process heavy transaction flows in India, catering to over 700 million registered consumers and 50 million merchants.

Ritesh Pai, who serves as CEO and Executive Director of International Payments at PhonePe, stated ANI, that the company was privileged to obtain the CBUAE’s preliminary endorsement, pointing to the UAE’s forward-looking policies and regulatory climate as a fitting base for the group’s global ambitions. He added that by pairing its technological infrastructure with domestic alliances, the company seeks to reinforce commerce and economic ties bridging the UAE, India, and wider global markets, while simultaneously elevating day-to-day transaction channels for consumers throughout the Emirates.

The company expects its projected UAE setup to work alongside existing financial rails, serving businesses as well as local residents.

Prior to these approvals, PhonePe had established cross-border functionality within the UAE tailored to Indian visitors. Running on a collaborative arrangement with NPCI International Payments Limited (NIPL), that framework permits outbound travellers from India to complete retail transactions across Network International and NEOPAY point-of-sale machines by reading local QR codes.

With the in-principle clearance now in hand, the company confirmed it is working with Emirati regulators to satisfy all outstanding prerequisites necessary to secure final clearance before mounting an official commercial rollout.