PhonePe has moved closer to becoming a locally regulated payments business in the UAE, but it has not launched one yet.
On September 22, the Indian payments company said it received in-principle approval from the Central Bank of the UAE for two licence categories: Retail Payment Services and Card Schemes, and Stored Value Facilities.
PhonePe has cleared an initial UAE regulatory step for two payment licence categories, but final CBUAE approval is still required before a locally regulated commercial launch.
UAE consumers, merchants, banks, fintech operators, payment providers and businesses following Aani and Jaywan adoption.
Final approval could add a large international payments platform to the UAE market and create new integrations with domestic payment infrastructure such as Aani and Jaywan.
In-principle approval is not final authorisation. PhonePe cannot begin commercial operations under these licences until remaining CBUAE requirements are completed and final approval is granted.
PhonePe must complete the remaining Central Bank requirements and obtain final regulatory approval before launching commercial operations under the licences.
Consumers and merchants should wait for final approval and official UAE product details before assuming which PhonePe services, fees or integrations will be available locally.
UAE consumers and merchants could gain another regulated payment option, while banks and payment providers may gain a new technology and distribution partner.
Existing PhonePe users can already use supported cross-border UPI acceptance in the UAE; locally regulated PhonePe services remain subject to final CBUAE approval.
Final CBUAE approval, the licensed UAE entity, launch date, supported services, and any confirmed integrations with Aani or Jaywan.
That is a meaningful regulatory milestone. It is also easy to overread. PhonePe still needs final CBUAE approval before it can begin commercial operations under those licences in the Emirates.
The approval is real. The launch is not here yet
PhonePe says the approvals followed initial regulatory due diligence. Reuters independently reported the same distinction: the company has received the initial regulatory nod, but final Central Bank sign-off is still required before commercial operations can start.
That matters because “approved” and “licensed to operate now” are not interchangeable. Robius applies the same rule when checking UAE investment and payment platforms: the useful question is not whether a regulator is mentioned, but what exact entity, activity and regulatory stage can actually be verified. Our UAE platform verification guide explains why that distinction matters.
What PhonePe wants to build in the UAE
Once final approval is secured, PhonePe says it plans to work with regional banks, licensed payment service providers and local technology companies. It also wants to explore ways its technology can support Aani, the UAE’s instant-payment platform, and Jaywan, the domestic card scheme.
The UAE would be PhonePe’s first full international regulatory expansion. The company already has a narrower cross-border presence here: Indian users have been able to use PhonePe for UPI international payments at supported UAE merchants, including through earlier acceptance arrangements with local payment networks. A locally licensed operation would be a different step — moving beyond facilitating payments for visiting Indian users toward operating inside the UAE’s own regulated payments ecosystem.
Why the two licence categories matter
The two approvals point to a broader ambition than simply adding more QR acceptance. Retail Payment Services and Card Schemes sit inside the Central Bank framework for regulated payment activity, while Stored Value Facilities cover regulated stored-value products.
PhonePe says it has more than 700 million registered users and a merchant network of more than 50 million businesses in India. Scale alone does not transfer a licence from one country to another. The UAE approval process is precisely what determines which services the local entity can ultimately offer here.
The Robius layer
The interesting part is not that another international payments app wants the UAE. It is where PhonePe wants to plug in.
Aani and Jaywan are pieces of domestic financial infrastructure, not just consumer brands. If PhonePe eventually connects meaningful products to those rails, its UAE expansion could become more locally embedded than simply exporting the Indian UPI experience.
For now, though, the clean status is straightforward: in-principle approval obtained; final approval pending; commercial launch not yet authorised under these licences.
Sources
- Reuters — India’s PhonePe gets initial UAE central bank nod for payment licences, September 22, 2026: https://www.reuters.com/world/middle-east/indias-phonepe-gets-initial-uae-central-bank-nod-payment-licenses-2026-09-22/
- PhonePe — Cross-border UPI international payments announcement and UAE availability: https://www.phonepe.com/press/phonepe-becomes-indias-first-fintech-platform-to-enable-cross-border-upi-payments/
- Central Bank of the UAE — official website and regulatory framework: https://centralbank.ae/en/
Checked September 22, 2026. Robius distinguishes in-principle regulatory approval from final authorisation to begin commercial operations.
Robius.news — Dubai, UAE — 2026 | Built to be first. Built to be trusted.
