Walmart-backed PhonePe has received in-principle approval from the Central Bank of the UAE (CBUAE) for two payment licences, moving closer to launching its first locally regulated payments operation outside India. The approvals cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF), allowing PhonePe to issue digital wallets and offer regulated retail payment services in the UAE, according to inc42.com.
The in-principle approvals do not permit immediate commercial operations as PhonePe must fulfill remaining regulatory requirements and secure final approval from the CBUAE. Once approved, PhonePe plans to collaborate with regional banks, licensed payment service providers, and local technology vendors in the UAE. It will also explore supporting the country’s domestic payment networks, Aani and Jaywan, using its technology platform, inc42.com reported.
This move marks PhonePe’s first international foray involving domestic business operations, expanding beyond its existing service that enables Indian travellers in the UAE to make UPI payments at local terminals through partnerships with NPCI International Payments. The fintech major incorporated PhonePe International Holdings Ltd in Abu Dhabi in September 2025, laying the groundwork for overseas expansion, inc42.com stated.
PhonePe’s next step is to meet the regulatory conditions to obtain final approval from the CBUAE. The company’s incorporation of PhonePe International Holdings Ltd in Abu Dhabi in September 2025 highlights its commitment to entering the UAE market with fully regulated payment services.