PhonePe moves closer to UAE launch after Central Bank approval

Dubai: Indian fintech firm PhonePe has taken a significant step towards launching payment services in the UAE following obtaining provisional clearance from the country's Central Bank. The approvals pertain to Retail Payment Services and Card Schemes and Stored Value Facilities, and come after completing the initial regulatory due diligence process.

While PhonePe has yet to receive final regulatory approval, it is poised to begin commercial operations in the UAE soon. The company aims to collaborate with regional banks, licensed payment service providers, and local technology vendors once the final approval is granted, focusing on integrating into the UAE's established payments landscape.

PhonePe also intends to explore opportunities to support Aani and Jaywan, the UAE's domestic payment rails, leveraging its comprehensive technology platform. The full-stack technology platform currently handles substantial transaction volumes in India, where it serves over 700 million registered users and 50 million merchants. The company's UAE deployment aims to complement existing financial infrastructure, facilitating payments for residents and businesses.

PhonePe CEO and Executive Director Ritesh Pai emphasized that the company's strategy combines cutting-edge technology with local partnerships to facilitate seamless transactions across the UAE, India, and global markets. The approval follows the UAE's Financial Infrastructure Transformation program and the nation's broader objective to promote digital payments.

Once PhonePe obtains final approval and commences operations, the UAE will become its first international market.