Featured image courtesy of PhonePe.

PhonePe has secured In-Principle Approval (IPA) from the Central Bank of the UAE (CBUAE) for two payment licenses: Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF). This initial regulatory clearance, first reported by The Hindu, advances the digital payments firm’s plans to begin commercial operations in the United Arab Emirates. It follows successful completion of initial regulatory due diligence and enables PhonePe to pursue final approval for its business expansion.

This approval represents PhonePe’s first regulatory clearance outside its home market of India. The move shows international ambition for the company, which has spent the past month actively expanding its service offerings within India. Just two weeks ago, on September 9, PhonePe partnered with Visa to launch cardless payment solutions for consumers and merchants. Entrackr and Inc42 tracked this development. That initiative focused on making payments easier and broader within existing markets. The CBUAE approval now shifts focus to geographical expansion, establishing a beachhead in a new, important region.

The decision to target the UAE is notable. According to Startuptalky, the UAE market already operates partly on Indian payment technology. This familiarity could ease PhonePe’s entry and adoption, as both merchants and consumers may already be accustomed to similar digital payment infrastructures. For other Indian fintech companies considering international expansion, PhonePe’s experience dealing with the CBUAE’s regulatory framework offers a case study in market assessment and compliance. It shows why understanding existing technological alignments and local regulations matters when expanding abroad.

Our previous coverage of PhonePe on August 22 noted its MeitY partnership and a $1 billion funding round. This funding and domestic policy engagement showed PhonePe’s strong position within India’s digital economy. The current push into the UAE suggests a strategic deployment of that capital to fuel international growth. With Inc42 reporting PhonePe as “IPO-bound,” demonstrating global market penetration and securing regulatory approvals in foreign markets can help its valuation and attract investors ahead of a public offering. This expansion illustrates how well-funded Indian tech firms translate domestic success into global aspirations. They use regulatory engagement as part of their growth plans.

The In-Principle Approval is not final approval. PhonePe still needs to secure full regulatory approval before it can launch its payment services in the UAE. This process involves meeting further compliance requirements, setting up local infrastructure, and demonstrating operational readiness to the CBUAE. The two licenses, Retail Payment Services and Card Schemes, alongside Stored Value Facilities, cover a broad spectrum of digital payment activities. These include processing transactions, issuing and managing payment cards, and operating digital wallets, which are core to PhonePe’s business model in India. These initial approvals indicate PhonePe plans to build a full payments platform in the UAE.

PhonePe’s systematic approach (first securing funding and solidifying domestic partnerships, then expanding its service offerings, and now pursuing international regulatory clearance) shows how Indian startups might grow. It emphasizes that while innovation is important, success in regulated sectors like fintech also relies on careful compliance and engaging with regulators. The move into the UAE, a major economic hub with strong ties to India, allows PhonePe to reach new users and serve the large Indian diaspora in the region. This diversifies its revenue streams.

What approval did PhonePe receive in the UAE?

PhonePe received In-Principle Approval (IPA) from the Central Bank of the UAE (CBUAE) for two payment licenses.

What types of licenses were granted?

The granted licenses are for Retail Payment Services and Card Schemes (RPSCS), and Stored Value Facilities (SVF).

Is this PhonePe’s first international regulatory clearance?

Yes, this marks PhonePe’s first regulatory clearance outside India.

Compiled by Launch91 Desk from the sources linked above. More about Launch91.