PhonePe UAE launch plans have advanced after the Central Bank of the UAE granted in-principle approval for two payment licences, although final regulatory clearance is still required before commercial operations can begin.
DUBAI: PhonePe UAE launch plans have moved a significant step forward after the Indian digital payments company secured in-principle approval from the Central Bank of the UAE for two licences, marking its first international regulatory footprint.
The approval, announced on September 22, 2026, covers Retail Payment Services and Card Schemes and Stored Value Facilities. It follows the completion of initial regulatory due diligence by the UAE central bank.
Can PhonePe launch in the UAE immediately?
Not yet. The approval is an initial regulatory milestone rather than permission to begin commercial operations.
PhonePe must complete the remaining requirements and receive final regulatory approval before formally starting its UAE business. This distinction is important for residents expecting immediate access to new PhonePe services.
Once final clearance is secured, the company plans to collaborate with regional banks, licensed payment service providers and local technology companies as it builds its presence in the Emirates.
What could PhonePe offer UAE users?
PhonePe’s Indian platform allows consumers to make payments, transfer money, recharge mobile accounts and pay bills through India’s Unified Payments Interface ecosystem.
Its UAE ambitions go beyond simply enabling Indian visitors to make UPI payments. The new licences would allow the company to work towards establishing a locally regulated payments business in the Emirates.
The company has also identified opportunities involving Aani, the UAE’s instant payment platform, and Jaywan, the country’s domestic card scheme. PhonePe intends to explore how its technology infrastructure could support these domestic payment systems.
PhonePe already works for some Indian visitors
PhonePe already provides limited payment functionality in the UAE through its partnership with NPCI International Payments Limited.
Indian travellers can use PhonePe to scan participating UAE QR codes and make payments through existing cross-border arrangements involving NEOPAY and Network International terminals.
A fully regulated local presence would represent a considerably broader move into the UAE payments market.
Why has PhonePe chosen the UAE?
PhonePe cited the UAE’s Financial Infrastructure Transformation programme, regulatory framework and growing digital economy among the reasons for selecting the Emirates for its international expansion.
The company brings considerable scale to that expansion. PhonePe reported more than 720 million life-to-date registered users as of August and a merchant acceptance network exceeding 50 million businesses.
The PhonePe UAE launch would therefore represent a major step beyond the company’s core Indian market and potentially deepen digital payment connections between India and the Emirates.
Impact to expect
Final approval could give UAE consumers and businesses another major digital payments provider while strengthening payment connectivity between the UAE and India. PhonePe’s interest in Aani and Jaywan could also support the Emirates’ broader shift towards locally integrated, cashless payment infrastructure.
