PhonePe’s first international market entry comes as it seeks final regulatory clearance to launch locally licensed payment services in the UAE
Indian digital payments platform PhonePe has received in-principle approval from the Central Bank of the UAE for two payment licences, marking its entry into its first international market.
The approvals cover Retail Payment Services and Card Schemes (RPSCS), and Stored Value Facilities (SVF). The company said on Tuesday that the approvals followed the completion of initial regulatory due diligence.
PhonePe will need to obtain final regulatory clearance before it can begin commercial operations in the UAE.
The company plans to work with regional banks, licensed payment service providers and local technology companies as it builds its operations in the country.
PhonePe said its expansion is aligned with the UAE’s Financial Infrastructure Transformation programme and its push towards a more cashless economy.
PhonePe eyes UAE payment rails
PhonePe also plans to explore integration with the UAE’s domestic payment infrastructure, including Aani and Jaywan.
Aani is the UAE’s instant payment platform, while Jaywan is the country’s domestic card scheme. PhonePe said its technology platform could support these payment rails as it develops its local operations.
The company said its platform has more than 700 million registered users and 50 million merchants in India. Its proposed UAE operations will focus on supporting payments for residents and businesses while working alongside the country’s existing financial infrastructure.
More from Business“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,” Ritesh Pai, CEO and executive director of International Payments at PhonePe, said.
PhonePe already has a presence in the UAE through its partnership with NPCI International Payments Limited. Indian travellers in the UAE can use PhonePe to scan local QR codes and make payments through NEOPAY and Network International terminals under existing cross-border arrangements.
The new licences would take PhonePe’s presence in the UAE beyond cross-border payments and towards locally regulated payment services.
The company said it is working with UAE authorities to complete the remaining requirements for final approval before launching its commercial operations.
(With inputs from agencies.)
