PhonePe Gets Initial UAE Nod for Payment Licence Applications

PhonePe receives in-principle UAE approval for two payment licences, moving closer to launching regulated operations and expanding its digital payments business in the Gulf market.

Indian digital payments platform PhonePe has received in-principle approval from the Central Bank of the UAE (CBUAE) for two payment licences, bringing the Walmart-backed fintech closer to establishing a regulated payments business in the Gulf country. The approvals cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF).

PhonePe said the approvals follow the completion of initial regulatory due diligence. However, the company still requires final regulatory approval from the UAE central bank before it can commence commercial operations. The fintech plans to work with regional banks, licensed payment service providers and local technology vendors once the remaining regulatory requirements are completed.

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The RPSCS framework covers several payment activities, including payment account and instrument issuance, merchant acquiring, payment aggregation, domestic and cross-border fund transfers and payment initiation services. The SVF licence relates to facilities that store monetary value for customers. The CBUAE states that in-principle approval does not constitute final authorisation to conduct regulated activities.

PhonePe’s proposed UAE expansion builds on its experience in India’s digital payments ecosystem. Launched in 2016, the platform enables users to make payments, recharge mobile connections, pay utility bills and transfer money through the Unified Payments Interface (UPI) network.

The UAE move would also expand PhonePe’s international payments strategy. The company plans to collaborate with local financial and technology partners and explore opportunities around the UAE’s domestic payment infrastructure, including Aani and Jaywan. PhonePe has previously supported UPI-based payments for Indian users in the UAE through partnerships involving local payment networks.

The company’s UAE licensing applications were filed in February 2025 for its proposed PhonePe Middle East entity. Its regulatory filings identified the same two licence categories now covered by the in-principle approval.

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The development comes as PhonePe continues to prepare for its planned public-market debut. The company had earlier put its IPO plans on hold amid geopolitical uncertainty and volatile global market conditions. It is targeting a valuation of $9 billion to $10.5 billion for the proposed offering.