PhonePe Expands Into UAE to Streamline Financial Services for Indian Expats

Indian digital payments company PhonePe is expanding into its first international market by entering the UAE, a development expected to significantly simplify financial transactions for the region's largest expatriate community.

The company recently secured in-principle approval from the UAE Central Bank for retail payment services, card schemes, and stored-value facilities. This regulatory milestone will enable Indians residing in the Emirates to pay bills, transfer funds, and manage their income back in India, according to a Tuesday announcement by PhonePe.

Previously, PhonePe provided limited operations in the UAE starting in 2024, enabling travelers from India to execute transactions via QR code-based Unified Payments Interface technology at Mashreq bank's Neopay terminals in Dubai.

“PhonePe intends to support the strong economic and trade corridors connecting the UAE, India and global markets, while striving to deliver elevated everyday payment experiences across the Emirates,” stated PhonePe chief executive Ritesh Pai.

Backed by Walmart, PhonePe stated it will now focus on obtaining final authorization from UAE authorities, though no specific timeline has been disclosed. The National has reached out to the UAE Central Bank for comment.

How It Works

The upcoming launch aligns with the broader strategy of the UAE to implement convenient, cost-effective cross-border digital payment platforms. The nation currently features Aani, an instant payments service introduced in 2023 under the UAE Central Bank’s Financial Infrastructure Transformation programme, alongside Jaywan, the nation's inaugural domestic card initiative comparable to Saudi Arabia's mada and India's RuPay. PhonePe announced intentions to investigate collaboration prospects with both Aani and Jaywan.

“The next phase may not be about getting more Indians to use digital payments; it may be about making digital payments work more easily across countries and for India, that matters,” noted Jupinder Arora, chief executive of Markup Designs, an IT consultancy based in Noida.

Official figures from the Embassy of India in Abu Dhabi indicate that approximately 4.3 million Indians live in the Emirates. Users will be able to settle bills and dispatch money to India through the PhonePe application simply by linking their overseas mobile numbers, with transactions processed instantly.

Furthermore, settling utility bills through the application removes the requirement for multiple logins. Users can also handle tax payments and oversee income originating from rent, dividends, or alternative sources within India.

“PhonePe aims to focus on deep ecosystem integration,” the organization declared. “Upon receipt of final regulatory approval, the company looks forward to collaborating with regional banks, licensed payment service providers, and local technology vendors to actively advance the cashless economy vision established by the UAE leadership.”

In addition to these expansions, PhonePe has previously considered an initial public offering, though those plans were temporarily suspended due to geopolitical hurdles and market volatility. Reports indicate the firm is pursuing a valuation reaching up to $10.5 billion.