PhonePe Gets UAE Central Bank Approval for Two Payment Licences

PhonePe, an Indian fintech company, received in-principle approval from the Central Bank of the UAE on 22 September 2026 for two payment licences. The approvals cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF), which are regulated payment categories in the United Arab Emirates.

PhonePe’s International Expansion

This approval is PhonePe’s first international expansion and a regulatory step towards operating in the United Arab Emirates. In-principle approval is a preliminary authorisation, and final regulatory clearances are required before commercial operations can begin.

Payment Licences and Regulatory Framework

Retail Payment Services and Card Schemes (RPSCS) covers payment services linked to retail transactions and card-based payment systems. Stored Value Facilities (SVF) refers to payment instruments that store monetary value for future use, and such facilities are regulated by central banks in many jurisdictions.

PhonePe plans to work with regional banks, licensed payment service providers, and local technology vendors in the UAE after receiving final approvals. The company also plans to explore support for the UAE domestic payment rails, Aani and Jaywan, through its full-stack technology platform.

Existing UAE Payment Presence

PhonePe already enables cross-border payments in the UAE for Indian travellers through a partnership with NPCI International Payments Limited. The service allows QR code payments at NEOPAY and Network International terminals.

Important Facts for Exams

• The Central Bank of the UAE is the monetary authority of the United Arab Emirates and regulates payment services in the country.
• RPSCS stands for Retail Payment Services and Card Schemes, a licence category linked to retail and card payments.
• SVF stands for Stored Value Facilities, a category used for prepaid or stored-value payment instruments.
• Aani is a domestic payment rail in the United Arab Emirates, and Jaywan is a UAE payment card scheme.

Regulatory and Market Context

PhonePe was founded in 2015 and is part of the digital payments ecosystem in India. NPCI International Payments Limited is the international arm of the National Payments Corporation of India and works on cross-border payment acceptance.