Indian payment platform PhonePe has received preliminary approval from the Central Bank of the UAE for two payment licences, bringing it closer to launching payment and stored-value services in the country. This matters to anyone using foreign cards and crypto payments: it shows how regulators are gradually opening markets to new players.
What exactly was approved
The UAE Central Bank granted PhonePe 'in-principle' approval for two payment licences. This is not a final authorisation, but an important step: the company can move to the next stage of the process and prepare for launch.
Planned services
- Payment services for transfers and settlements.
- Stored-value services — similar to accounts with a stored balance.
Why it matters for users
The UAE is a popular destination for tourists, expats, and entrepreneurs. New payment players usually mean more choice, competition on fees, and more convenient payment methods. For those using virtual cards and crypto, it signals that infrastructure in the region is developing, which could make international payments easier.
Practical angle
If you plan to travel to the UAE or do business there, keep an eye on PhonePe's launch. Once the service goes live, you may gain an additional way to pay for local services. For now, it's safer to have a virtual card with a balance in the right currency — it will help if local payment services don't yet support your usual method.
Note: preliminary approval does not guarantee launch. Final licences may be issued later or with conditions.
What's next
PhonePe will continue the licensing process. Launch dates have not been announced. We'll follow the developments to keep you informed about how this affects paying for foreign services.
Not financial advice. Cryptocurrencies and payment services carry risks.
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