PhonePe has received in-principle approval from the Central Bank of the UAE (CBUAE) for two payment licences.

The licences cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF).

The approval came after the regulator completed its initial checks. PhonePe still needs final approval before it can start doing business in the UAE.

PhonePe said its UAE plans were inspired by the country’s Financial Infrastructure Transformation (FIT) programme.

It also pointed to the UAE’s regulations and digital economy as reasons for its choice.

Once it gets final approval, PhonePe plans to work with regional banks, licensed payment firms and local tech vendors.

The company said this would support the UAE’s goal of becoming a cashless economy.

PhonePe also intends to explore ways to support Aani and Jaywan, the UAE’s domestic payment rails.

It plans to use the same technology it runs in India, where it has more than 700 million registered users and 50 million merchants.

The company said its UAE rollout is meant to work alongside the country’s existing payment systems.

“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.

Indian travellers can already use PhonePe in the UAE through existing cross-border arrangements.

In partnership with NPCI International Payments Limited (NIPL), they can scan local QR codes and pay at NEOPAY and Network International terminals.

For now, PhonePe said it is working with the authorities to meet the remaining requirements for final approval ahead of its launch.

Featured image: Edited by Fintech News UAE, based on image by sekillerim06 via Magnific.