PhonePe receives provisional UAE central bank approval for payment licences
Fintech firm PhonePe has been given in-principle clearance by the UAE central bank for two payment licences, pending final sign-off.
PhonePe announced that the United Arab Emirates central bank has granted it in-principle approval for two licences that will enable retail payment services, card scheme participation and stored-value facilities. This provisional clearance follows an early regulatory due-diligence process, yet the firm must still obtain a final sign-off before commencing commercial activities in the country. Upon receiving full approval, PhonePe intends to partner with local banks, licensed payment service providers and technology vendors.
The Indian digital payments platform, founded in 2016 and built on the Unified Payments Interface, had earlier postponed its IPO due to geopolitical and market volatility. The pending listing aims for a valuation between $9 billion and $10.5 billion, with Walmart reducing its stake and investors Tiger Global and Microsoft planning exits.
Why it matters
The approval could expand PhonePe's reach into the Middle East, boosting cross-border digital payments and its growth prospects.
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