United Arab Emirates: Indian digital payments platform PhonePe has received in-principle approval from the UAE central bank for two licences covering retail payment services, card schemes and stored value facilities.
The Walmart-backed fintech company stated that the approval followed initial regulatory due diligence. PhonePe still requires final approval from the UAE central bank before it can begin commercial operations in the country.
“Upon receipt of final regulatory approval, the company looks forward to collaborating with regional banks, licensed payment service providers, and local technology vendors,” PhonePe stated.
The approval marks a step towards PhonePe expanding its payments business into the UAE and establishing operations in the Gulf market. The company has not yet announced a specific date for the launch of its UAE services.
Launched in 2016, PhonePe operates a digital payments application that allows users to recharge mobile services, pay bills and transfer money through India’s Unified Payments Interface (UPI) network.
The company has grown into one of India’s major digital payments platforms, with its services covering a broad range of consumer transactions. Its planned UAE expansion comes as digital payments and financial technology services continue to develop across the Gulf region.
Earlier in 2026, PhonePe put its closely watched initial public offering on hold, citing geopolitical uncertainty and volatile global market conditions. The company stated that it would revive the listing process once market stability improves.
PhonePe is targeting a valuation of $9 billion to $10.5 billion in its proposed IPO, according to two sources with direct knowledge of the matter who spoke to Reuters in March.
The company’s IPO filing showed that Walmart plans to reduce its stake in PhonePe by about 12 percent through the offering. Existing investors Tiger Global and Microsoft are also planning to fully exit through the proposed listing.
The UAE approval comes as PhonePe continues to prepare for its next phase of international expansion while its planned stock market listing remains on hold. The company will need to secure final regulatory approval before launching commercial payment operations in the UAE.
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