Indian digital payments company PhonePe is set to enter its first international market in the UAE, in a move expected to further ease payment activities for the Emirates' biggest expat community.
The company received in-principle approval from the UAE Central Bank for retail payment services and card schemes, as well as stored-value facilities, which would allow Indians in the Emirates to pay bills, transfer money and manage income in India, PhonePe said on Tuesday.
PhonePe has offered limited services in the UAE since 2024, allowing users travelling from India to make payments through the QR code-based Unified Payments Interface at the Dubai bank Mashreq’s Neopay terminals.
“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,” PhonePe chief executive Ritesh Pai said.
Walmart-backed PhonePe said it will now work towards securing final approval from UAE authorities, without giving a timeline. The National has requested a comment from the UAE Central Bank.
How it works
PhonePe's impending entry into the UAE boosts the country's strategy on the use of cross-border digital payment platforms, which are designed to be convenient and affordable.
The Emirates already has Aani, an instant payments service launched in 2023 under the UAE Central Bank’s Financial Infrastructure Transformation programme, and Jaywan, the country's first national domestic card programme similar to Saudi Arabia's mada and India's RuPay. PhonePe said it plans to explore opportunities to support Aani and Jaywan.
“The next phase may not be about getting more Indians to use digital payments; it may be about making digital payments work more easily across countries and for India, that matters,” said Jupinder Arora, chief executive of Markup Designs, an IT consultancy based in Noida.
“Millions of Indians live, work and travel outside the country, businesses trade across borders, families send money home, Indian travellers want simpler ways to pay abroad, while international customers and businesses increasingly need easier ways to transact with India.”
There are an estimated 4.3 million Indians in the Emirates, the latest data from the Embassy of India in Abu Dhabi shows.
Users can pay bills and send money back home through the PhonePe app by linking their overseas mobile number. Moving finances through PhonePe is instant, according to the company. Paying utility bills through the app also eliminates the need for multiple logins.
Taxes can be paid through the service, while any income from rent, dividends or other sources in India can also be managed with PhonePe.
“PhonePe aims to focus on deep ecosystem integration,” the company said.
“Upon receipt of final regulatory approval, the company looks forward to collaborating with regional banks, licensed payment service providers, and local technology vendors to actively advance the cashless economy vision established by the UAE leadership.”
PhonePe also has plans for an initial public offering, but these have been put on hold amid geopolitical challenges and uncertain market conditions. The company is reportedly seeking a valuation of up to $10.5 billion.
