Indian digital payments platform PhonePe is preparing to launch operations in the UAE after receiving in-principle approval from the Central Bank of the UAE for two payment licences, marking the company’s first international footprint.
PhonePe received in-principle approval for Retail Payment Services and Card Schemes and Stored Value Facilities licences after completing initial regulatory due diligence.
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The approval is an initial regulatory step and does not yet allow PhonePe to begin commercial operations. The company said it will continue working with the authorities to complete the requirements needed to secure final approval before launching in the UAE.
PhonePe targets UAE payments market
Once final regulatory approval is received, PhonePe plans to collaborate with regional banks, licensed payment service providers and local technology companies as it seeks to establish itself in the UAE’s digital payments ecosystem.
The company said the UAE’s Financial Infrastructure Transformation (FIT) programme, regulatory framework and growing digital economy were among the factors behind its decision to choose the Emirates for its international expansion.
PhonePe said it aims to support the UAE’s push towards a cashless economy while integrating its technology with the country’s existing financial infrastructure.
Aani and Jaywan opportunities
The Indian company also intends to explore opportunities to support Aani and Jaywan, the UAE’s domestic payment platforms, using its technology infrastructure.
PhonePe’s platform serves more than 700 million registered users and 50 million merchants in India, giving the company experience in handling large transaction volumes.
The company said any deployment in the UAE would be designed to complement existing financial infrastructure and support payments for residents and businesses.
UAE-India payment corridor
Ritesh Pai, CEO and Executive Director of International Payments at PhonePe, said the UAE’s regulatory environment and digital ambitions made it an important market for the company’s international expansion.
“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 plans to combine its technology with local partnerships to support economic and trade links between the UAE, India and international markets.
Indian travelers already use PhonePe in UAE
PhonePe already provides some payment functionality in the Emirates through a partnership with NPCI International Payments Limited .
Indian travelers in the UAE can use PhonePe to scan local QR codes and make instant payments across NEOPAY and Network International terminals through existing cross-border arrangements.
The in-principle approval, however, represents a broader step towards establishing PhonePe’s own regulated presence in the UAE.
The company said it will now work to complete the remaining regulatory requirements before seeking final approval for its commercial launch.
Source: Khaleej Times