PhonePe’s Expansion Plans Continue With Approval For UAE Launch

PhonePe takes a step towards UAE operations with in-principle regulatory approval.

PhonePe, India’s leading digital payments platform, has achieved another milestone by expanding its operations to the UAE. It has received the in-principle approval from the UAE Central Bank.

The approvals cover retail payment services and card schemes (RPSCS) and stored value facilities (SVF).

On 22nd September, Ritesh Pai, PhonePe’s CEO and Executive Director, International Payments,  said

” Upon receipt of final regulatory approval, the company looks forward to collaborating with regional banks, licensed payment service providers and local technology vendors”

With serving more than 700 million registered users and around 50 million merchants in India, the company said its platform is built to handle large transactions and volumes.

Launched in 2016, PhonePe, an Indian digital payments platform, allows users to transfer money, pay bills and recharge. While Indian travellers have been able to use PhonePe-linked UPI payments in the UAE by scanning local QR codes and making payments across NEOPAY, the new development is aimed at enabling PhonePe to establish local payment operations in the country, subject to final regulatory approval.

Pai said, “By combining world-class technology with local partnerships, PhonePe intends to support the strong economic and trade corridors connecting the UAE, India, and global markets, while striving to deliver elevated everyday payment experiences across the Emirates.”

The company is still awaiting the final regulatory approval to begin commercial operations in the UAE. PhonePe said that it plans to work with regional banks, licensed payment service providers and local technology vendors once the final approval is secured, intending to integrate its services into the UAE’s existing payments ecosystem.

PhonePe is also exploring opportunities to support Aani and Jaywan, which are the UAE’s domestic payment systems, through its technology platform.

The company said the proposed expansion aligns with the UAE’s efforts to modernise its financial infrastructure and promote the use of digital payments. PhonePe is still working with authorities to complete the requirements needed for final approval. Once the final approval is received, the UAE will be PhonePe’s first international market to begin their commercial operations.

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