PhonePe has received its first international licence from the Central Bank of the UAE, enabling it to launch full-scale payments operations in the country, founder and CEO Sameer Nigam announced at the Global Fintech Fest. This marks PhonePe's initial step into overseas markets beyond facilitating UPI payments for Indian users abroad, with the UAE as its first foreign market.
The fintech company currently supports UPI payments in select international markets including the US, UK, Singapore, Australia, UAE, and Saudi Arabia. The newly acquired UAE licence allows PhonePe to offer comprehensive local payment services rather than just cross-border UPI transactions. This move follows Paytm's recent acquisition of a payment institution licence from Luxembourg, which permits it to operate across Europe.
PhonePe's expansion into the UAE aligns with its broader global ambitions, further supported by its partnership with Visa to launch cardless payment solutions worldwide. At the event, PhonePe introduced three new offerings: Tap to Pay, Cross Border Scan to Pay, and Smart Accept, enhancing its international payment capabilities and user experience.
The UAE licence represents a significant milestone for PhonePe as it prepares for its IPO, positioning the company to compete more directly in international markets. The company plans to launch its local operations in the UAE imminently, marking the start of its global payments business expansion.