PhonePe Secures UAE Central Bank Approval for Retail Payments and Stored Value Licenses

PhonePe has secured In-Principle Approval from the Central Bank of the UAE for two critical licenses: Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF). This regulatory milestone marks a significant step in the Indian fintech’s international expansion, allowing it to begin formalizing its presence in the Emirates’ rapidly digitizing financial landscape.

What was announced

The Central Bank of the UAE (CBUAE) has granted PhonePe In-Principle Approval (IPA) for its Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF) licenses. This follows the completion of initial regulatory due diligence and provides a foundation for the company to seek final approval to begin commercial business operations within the United Arab Emirates. The expansion is aligned with the UAE’s Financial Infrastructure Transformation (FIT) program, a government-led initiative designed to accelerate the nation’s transition toward a digital-first economy.

PhonePe’s strategy for the region involves deep integration into the local financial ecosystem. Once final regulatory clearance is obtained, the company intends to collaborate with regional banks, licensed payment service providers, and local technology vendors. A key component of this foray includes exploring opportunities to support the UAE’s domestic payment rails, specifically 'Aani' and 'Jaywan'. PhonePe plans to leverage its full-stack technology architecture, which currently manages high transaction volumes for over 700 million registered users and 50 million merchants in India.

While the company works toward its full commercial launch, it already maintains a presence in the UAE through a partnership with NPCI International Payments Limited (NIPL). This existing arrangement allows Indian travelers to use the PhonePe app to scan local QR codes and make instant payments across Network International and NEOPAY terminals. The proposed deployment of its broader service suite is intended to complement these existing cross-border arrangements and support seamless commerce for both residents and enterprises.

"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. As the UAE advances toward an interconnected, digital-first economy, PhonePe aims to be a committed, long-term partner supporting its evolving ecosystem. By combining world-class technology with local partnerships, PhonePe intends to support the strong economic and trade corridors connecting the UAE, India, and global markets, while striving to deliver elevated everyday payment experiences across the Emirates."

Ritesh Pai, CEO and Executive Director, International Payments at PhonePe

The companies involved

PhonePe Limited, formerly known as PhonePe Private Limited, is a major Indian technology company specializing in digital platforms for payments, financial services, and digital distribution. Headquartered in India and launched in 2016, the company has grown into one of the largest digital payment networks in the world. As of August 2026, PhonePe reported over 72 crore (720 million) life-till-date registered users and an acceptance network exceeding 5 crore (50 million) merchants. Its product suite has expanded beyond simple peer-to-peer transfers to include merchant payments, lending, and insurance distribution. The company also operates new platforms such as Share.Market, a stock broking and mutual funds distribution service, and the Indus Appstore, an Android-based mobile application marketplace.

NPCI International Payments Limited (NIPL) is a subsidiary of the National Payments Corporation of India (NPCI). It is tasked with the internationalization of India’s homegrown payment systems, such as the Unified Payments Interface (UPI) and RuPay. NIPL works with global regulators and financial institutions to establish cross-border payment links, enabling Indian digital payment solutions to function in foreign markets like the UAE and Singapore.

What FF News has reported before

FF News has closely followed PhonePe’s diversification and the global expansion of Indian payment rails. In early 2026, the publication covered the launch of the PhonePe Launches ‘On-The-Go’ Card for Seamless, Offline Payments for Transit, which marked a significant push into offline transit solutions. This followed the company's efforts to deepen financial inclusion in its home market, such as when HDFC ERGO in Partnership with PhonePe, to Offer an Affordable Health Insurance Solution to India’s ‘Missing Middle’ was announced to provide accessible health coverage. Additionally, the company addressed the feature phone market by releasing PhonePe Launches PhonePe UPI 123Pay to Bring Offline Digital Payments to 200M+ Feature Phone Users in India. On the international front, NIPL’s broader strategy was highlighted when FOMO Pay and NIPL Launch UPI Payments at Singapore’s Resorts World Sentosa, demonstrating the growing footprint of Indian fintech standards abroad.

What this means

The UAE is becoming the primary battleground for international fintech expansion, particularly for firms originating in the Indian subcontinent. By securing these in-principle approvals, PhonePe is moving from a "tourist" service—serving Indian travelers—to a "resident" service that could challenge local incumbents. The decision to support domestic rails like Aani and Jaywan suggests a "local-first" strategy that may put pressure on traditional UAE banks and existing digital wallets to innovate faster. The most significant impact will likely be felt in the India-UAE trade corridor, where the integration of high-volume, full-stack technology could drastically reduce friction for cross-border commerce. However, the open question remains how quickly PhonePe can navigate the final regulatory hurdles to achieve full commercial scale.