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PhonePe, the Walmart-backed Indian payments company, has secured in-principle approval from the Central Bank of the UAE for two payment licences, paving the way for a local business spanning consumer wallets, remittances and merchant payments.
The approvals cover Retail Payment Services and Card Schemes, and Stored Value Facilities. They mark PhonePe’s first international regulatory footprint, although the company still needs final authorisation before it can begin commercial operations in the Emirates.
Ritesh Pai, CEO and executive director of PhonePe’s international payments business, told EnterpriseAM that the company intends to bring merchant acquiring, wallets and remittances onto one platform, with a particular focus on SMEs it considers underserved. A launch timeline will be disclosed once final regulatory approvals are granted.
PhonePe already has a presence at UAE checkouts through its partnership with NPCI International Payments Limited, which enables Indian travellers to use the app to scan QR codes at participating NEOPAY and Network International terminals. The proposed UAE business would extend its reach into payments made by local residents and businesses.
The Indian diaspora offers a significant plausible starting audience, giving PhonePe a potential pool of customers already familiar with its brand, alongside an established need to move money between the two countries.
PhonePe plans to work with regional banks, licensed payment providers and local technology companies. It also intends to explore support for Aani and Jaywan, the UAE’s domestic payment infrastructure. Aani enables instant transfers around the clock, while Jaywan is the national card payment scheme. PhonePe has described these integrations as opportunities it intends to explore, rather than completed connections.
The company brings substantial scale from India. Its September announcement puts its registered user base at more than 720 million as of August 2026, with a payments acceptance network covering more than 50 million merchants. These are registered-user figures, rather than a measure of active customers.
PhonePe raised $350 million from General Atlantic at a $12 billion pre-money valuation in January 2023, following its separation from Flipkart and relocation of its domicile to India. Its backers have also included Tiger Global, Microsoft and Qatar Investment Authority.
The UAE expansion comes as PhonePe’s planned IPO remains on hold. Reuters reported that the company paused the process earlier this year amid geopolitical uncertainty and volatile markets, with a return dependent on conditions improving.
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