PhonePe Secures In-Principle Approval for UAE Payment Licenses
Indian digital payments giant PhonePe has taken a monumental step toward establishing a regulated presence in the United Arab Emirates. The company has officially received in-principle approval from the Central Bank of the UAE (CBUAE) for two critical payment licenses, signaling its intent to become a major player in the region's financial ecosystem.
The Two Licenses at a Glance
The in-principle approval covers two specific categories that will allow PhonePe to build a comprehensive suite of financial tools:
- Retail Payment Services and Card Schemes (RPSCS): This license focuses on the retail payment ecosystem, covering payment processing, merchant-facing services, and the necessary card and payment infrastructure.
- Stored Value Facilities (SVF): This pertains to regulated products that facilitate digital payment services through stored-value mechanisms.
Crucial Update: Commercial Operations Have Not Started
It is important for consumers and businesses to note that this in-principle approval is not a final license. According to the CBUAE’s regulatory framework, PhonePe must successfully fulfill all remaining regulatory requirements before it can receive final authorization.
PhonePe has confirmed that it is prohibited from launching any regulated commercial activities until the final approval is officially granted.
This means that, currently, there are no new PhonePe UAE wallets, local accounts, remittance products, or domestic payment services available to the public or Indian expatriates.
Future Integration and the Cashless Economy
Once final regulatory clearance is secured, PhonePe plans to integrate deeply with the UAE's financial infrastructure. The company's roadmap includes:
- Collaborating with regional banks and licensed payment service providers.
- Partnering with local technology firms.
- Exploring integration with the UAE’s domestic payment rails, specifically Aani and Jaywan.
These moves align with the UAE's broader Financial Infrastructure Transformation program and the national initiative to foster a cashless economy.
What Can Users Do Now?
While PhonePe is a massive force in India—serving over 700 million registered users and 50 million merchants—its current UAE operations are limited to existing partnerships. Currently, Indian travelers can use UPI-based payments at NEOPAY and Network International merchant terminals through a partnership with NPCI International Payments Limited. Under this setup, funds are debited in INR from linked Indian bank accounts, with currency conversion applied.
Although PhonePe has expressed interest in introducing inward remittance services, no specific details regarding product features, launch dates, fees, or exchange-rate models have been announced as of September 22, 2026.
Security Alert: Beware of Scams
As the company moves closer to its official launch, users should remain vigilant against fraudulent activity. Please keep the following in mind:
- Continue to use only officially supported UPI International features.
- Exercise extreme caution regarding any unofficial claims or advertisements concerning "PhonePe UAE accounts" or "special expat KYC" protocols.
Official details regarding transaction limits, eligibility, and KYC requirements will only be released by the company following its final regulatory authorization.