PhonePe is preparing to establish its first international operating footprint in the UAE after receiving in-principle regulatory approval for two payments licences, marking a significant step beyond the Indian market for one of the world’s largest digital payments platforms. The move could eventually give PhonePe a much deeper role in the Emirates than simply facilitating payments for Indian visitors, with the company looking to participate in the UAE’s domestic payments ecosystem, work with local financial institutions and potentially support national payment infrastructure including Aani and Jaywan.
PhonePe has received In-Principle Approval (IPA) from the Central Bank of the UAE (CBUAE) for Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF) licences following the completion of the initial regulatory due-diligence process.
The approvals do not yet allow PhonePe to commence commercial operations in the UAE. Instead, they represent an important regulatory milestone as the company works towards satisfying the remaining requirements necessary to receive final approval from the CBUAE.
For PhonePe, the UAE represents its first major step towards establishing an operating presence outside India. The company said the country’s Financial Infrastructure Transformation (FIT) programme, expanding digital economy and regulatory framework were among the factors behind its decision to target the Emirates for international expansion.
Once final regulatory approval is secured, PhonePe plans to build its UAE presence around partnerships with regional banks, licensed payment service providers and local technology companies rather than operating as an isolated payments platform. The company said this approach would allow it to integrate more closely with the country’s existing financial infrastructure while contributing to the UAE’s broader transition towards a cashless economy.
An important part of that strategy could involve the UAE’s increasingly important domestic payment infrastructure. PhonePe said it intends to explore opportunities to support Aani, the country’s instant payments platform, and Jaywan, its domestic card scheme, using the technology architecture developed to operate its payments ecosystem in India.
That experience gives PhonePe considerable scale to bring to a new market. As of August 2026, the company reported more than 700 million registered users and a merchant acceptance network covering over 50 million merchants in India. Its platform spans consumer and merchant payments as well as financial services, lending and insurance distribution, alongside newer businesses including the Share.Market investment platform and Indus Appstore.
Ritesh Pai, CEO and Executive Director, International Payments at PhonePe, said the UAE’s regulatory environment and digital ambitions made it a natural starting point for the company’s international expansion.
“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,” Pai said.
He added that PhonePe intends to combine its technology capabilities with local partnerships while supporting the economic and trade links connecting the UAE, India and other international markets.
PhonePe already has some exposure to the UAE payments market through its partnership with NPCI International Payments Limited (NIPL). Existing cross-border arrangements allow Indian travellers using PhonePe to scan supported local QR codes and make payments at merchants operating through NEOPAY and Network International acceptance networks.
The new regulatory approvals point towards a considerably broader ambition. Rather than serving the UAE primarily as an extension of India’s UPI ecosystem for travellers, PhonePe is positioning itself to become part of the domestic payments landscape, subject to receiving the required final regulatory approvals.
The UAE could also provide an important test of how successfully India’s large digital payments companies can translate the scale and technology developed in their home market into regulated financial ecosystems overseas. The Emirates has increasingly positioned itself as a testing ground for new payment infrastructure, instant payments, domestic card schemes and cross-border financial connectivity, creating opportunities for international technology providers while maintaining a licensing-led regulatory environment.
For PhonePe, establishing itself within that ecosystem could create a foundation for further international expansion while strengthening payment connectivity across the substantial commercial and consumer corridor between India and the UAE.
What it means
- PhonePe is moving beyond cross-border UPI acceptance: The CBUAE approvals represent a pathway towards a regulated operating presence in the UAE rather than simply enabling Indian customers to use PhonePe while travelling.
- The UAE becomes a test market for PhonePe’s international ambitions: Successfully adapting a platform built at Indian scale to the UAE’s regulatory and banking environment could influence how the company approaches other international markets.
- Domestic infrastructure is central to the strategy: PhonePe’s interest in Aani and Jaywan suggests it wants to integrate with the UAE’s emerging national payment infrastructure rather than build a completely separate ecosystem.
- India-UAE payment connectivity could deepen: PhonePe’s existing cross-border payment capabilities, combined with a future domestic UAE presence, could create additional opportunities around travel, commerce and payments between the two markets.
- Final approval remains the key next step: In-principle approval is an important regulatory milestone, but PhonePe must still complete the CBUAE’s remaining requirements before beginning commercial operations in the UAE.
Article Source: PhonePe
