Two licences move PhonePe closer to launch
PhonePe received in-principle approval from the Central Bank of the UAE on 22 September 2026, according to the company and Reuters. The approval covers Retail Payment Services and Card Schemes, alongside Stored Value Facilities.
However, PhonePe still needs final authorisation before starting commercial operations in the Emirates. The company said the approval followed initial regulatory due diligence.
The licences would allow PhonePe to develop local payment services, stored-value products and card-related offerings. The company has not announced a commercial launch date.
Ritesh Pai, PhonePe’s chief executive and executive director for international payments, said the firm was working with UAE authorities. The company must complete the remaining regulatory requirements before launch.
Meanwhile, PhonePe’s planned UAE entry adds another competitor to a growing digital-payments market. The Emirates is promoting cashless transactions and expanding its regulated fintech sector.
PhonePe expects to build partnerships with local businesses, rather than replicate its Indian model without changes. Pai said regulation, consumer behaviour and payment infrastructure differ between markets.
What does the deal mean for investors?
PhonePe’s UAE strategy will focus initially on the Emirates, the company said. Future expansion will depend on regulation, India-linked payment corridors and long-term commercial sustainability.
For UAE residents, the platform could support everyday payments, utility bills, QR merchant transactions and stored-value wallets. It could also provide remittance services to several international markets.
That proposition targets a large cross-border payments market. It also places PhonePe closer to Indian residents and businesses operating in the Gulf.
PhonePe is one of India’s largest digital-payment platforms. The company handles about half of all transactions on India’s Unified Payments Interface, according to the company and Reuters.
PhonePe has more than 700 million registered users and 50 million merchants in India, according to company information reproduced by Reuters. Walmart backs the fintech, giving its international push a major strategic shareholder.
The UAE approval therefore arrives before a closely watched capital-markets event. Reuters reported in March that PhonePe was targeting a $9bn to $10.5bn valuation for an initial public offering.
The UAE will test whether PhonePe can transfer its scale into a new regulatory and commercial environment. Its progress may influence investor views on overseas growth, licensing execution and remittance economics. As the UAE and Saudi Arabia lead the Arab digital economy, new fintech entrants face both opportunity and benchmark pressure.
For competitors, the move raises pressure to improve merchant acceptance, wallet services and cross-border payment links. For banks and payment firms, PhonePe’s entry adds a sizeable technology platform with established India connectivity.
Investors should watch final licensing, local partnerships and the timing of commercial operations. Those milestones will show whether PhonePe’s first overseas approval can become a scalable Gulf platform.
Quick answers
PhonePe received in-principle approval from the Central Bank of the UAE on 22 September 2026, covering Retail Payment Services, Card Schemes and Stored Value Facilities. Final authorisation is still required before commercial operations can begin.
PhonePe has more than 700 million registered users and 50 million merchants in India, handling roughly half of all Unified Payments Interface transactions. Walmart is a major strategic shareholder in the company.
Reuters reported in March 2026 that PhonePe was targeting a valuation of between $9bn and $10.5bn for an initial public offering. The UAE licensing milestone arrives ahead of that closely watched capital-markets event.
