PhonePe wins UAE payments licences, eyes domestic rails integration

PhonePe has cleared a significant regulatory hurdle in its expansion into the United Arab Emirates, obtaining in-principle approval for two payments licences from local authorities. The move marks a major step in the digital payments giant's international growth strategy, following its establishment in the region.

As part of its UAE market entry strategy, PhonePe intends to integrate with Aani and Jaywan, the country's domestic payment rail systems. These connections would enable the platform to facilitate seamless transactions using local infrastructure, a key requirement for establishing comprehensive payment services in the market.

The in-principle approvals underscore the regulatory framework's openness to international fintech players, particularly those from South Asia. PhonePe's integration with UAE's domestic payment systems positions it to offer customers access to local payment methods alongside its existing digital wallet and money transfer services.

The company now moves toward the final licensing phase and commercial launch in the UAE. PhonePe's entry into the Middle Eastern market represents a continuation of its expansion beyond India, where it has established itself as one of the country's leading digital payments platforms.