PhonePe is moving closer to launching its locally regulated payment operations in the United Arab Emirates after receiving in-principle approval from the UAE central bank for two payment licences.
The approvals cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF). The company said the approval follows an initial regulatory due diligence process. However, PhonePe will need final regulatory clearance before it can begin commercial operations in the UAE.
Once the final approval is secured, PhonePe plans to work with regional banks, licensed payment service providers and local technology companies to build its presence in the UAE. The move marks an important step in the company’s international expansion strategy.
Founded in 2016, PhonePe operates one of India’s major digital payment platforms, allowing users to make payments, recharge mobile connections, pay bills and transfer money through the Unified Payments Interface (UPI).
The UAE expansion would take PhonePe beyond facilitating UPI transactions for Indian users and towards establishing a locally regulated payments business. The company has also indicated that it intends to explore opportunities involving the UAE’s domestic payment systems, including Aani and Jaywan.
PhonePe had earlier put its proposed initial public offering on hold, citing geopolitical uncertainty and volatile global market conditions. The company has said it plans to revisit the listing when market conditions become more stable.
The latest regulatory approval brings PhonePe one step closer to establishing its first locally licensed international operations, with the final regulatory clearance now remaining the key requirement before its UAE commercial launch.
