Bengaluru (Karnataka) [India], September 22 (ANI): PhonePe has received in-principle approval from the Central Bank of the UAE (CBUAE) for two payment licences, marking the company's first international regulatory approval and paving the way for its entry into the UAE market.
The approvals cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF), PhonePe said in a press release on Tuesday.
The approvals follow the completion of the initial regulatory due diligence by the CBUAE, the company said.
“We are honoured to receive In-Principle Approval from the CBUAE. The country's vision and regulatory environment make it an ideal setting for our international journey,” said Ritesh Pai, CEO and Executive Director, International Payments at PhonePe.
Following final regulatory approval, PhonePe plans to work with regional banks, licensed payment service providers and local technology companies to support the UAE's cashless economy, the company said.
PhonePe also plans to explore opportunities to support the UAE's domestic payment systems, including Aani and Jaywan, through its technology platform.
The company said its technology platform is designed to handle high transaction volumes and is currently used by more than 700 million registered users and 50 million merchants in India.
PhonePe said its proposed operations in the UAE will complement the country's existing financial infrastructure and support digital payments for residents and businesses.
The company's expansion plans are aligned with the UAE's Financial Infrastructure Transformation (FIT) programme and its broader digital economy agenda, PhonePe said.
“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, while striving to deliver elevated everyday payment experiences across the Emirates,” Pai said.
PhonePe already has a cross-border payments presence in the UAE for Indian travellers. In partnership with NPCI International Payments Limited (NIPL), the company enables Indian travellers to scan local QR codes and make payments at NEOPAY and Network International terminals through existing cross-border arrangements.
The in-principle approval provides PhonePe with a regulatory foundation in the UAE as the company works with authorities to complete the remaining requirements for final approval before a commercial launch, it said. (ANI)
PhonePe gets in-principle approval for two UAE payment licences
