Indian digital payments company PhonePe said on Tuesday it had received in-principle approval from the Central Bank of the United Arab Emirates for two payment-related licences, marking its first regulatory step towards launching operations in the country.
The approval covers licences for Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF), PhonePe said.
The company will need to meet further regulatory requirements and obtain final approval before beginning commercial operations in the UAE.
PhonePe, which has more than 700 million registered users and 50 million merchants in India, said the UAE would be an important market in its international expansion strategy.
The company plans to build partnerships with local banks, licensed payment service providers and technology companies as it seeks to expand its presence in the country’s digital payments ecosystem.
PhonePe said it also intends to explore opportunities to support the UAE’s domestic payment infrastructure, including Aani and Jaywan, through its technology platform.
The move comes as the UAE pushes to expand digital payments and financial infrastructure under its Financial Infrastructure Transformation programme.
” We are honoured to receive In-Principle Approval from the CBUAE,” said Ritesh Pai, CEO and executive director, International Payments at PhonePe.
He said the company aims to work with local partners to support payment and trade links between the UAE, India and other global markets.
PhonePe already has a presence in the UAE through a partnership with NPCI International Payments Limited (NIPL). Indian travellers can use PhonePe to make QR-code payments at participating merchants through cross-border arrangements involving payment networks NEOPAY and Network International.
The latest approval would allow PhonePe to move towards establishing a local regulated payments business, subject to final regulatory clearance.
The company said it would continue working with UAE authorities to complete the remaining requirements before launching its commercial operations.
