The financial technology company PhonePe has received preliminary consent to obtain two payment licenses in the United Arab Emirates (UAE). Furthermore, the company intends to support the local payment systems Aani and Jaywan, which are analogues to UPI and RuPay in this country.
The Central Bank of the UAE granted PhonePe preliminary approval for licenses in retail payment services and card schemes (RPSCS), as well as for value storage services (SVF).
In a statement, the Bengaluru-based company announced that it plans to utilize its full-featured technology platform to explore opportunities for supporting the local UAE payment systems—'Aani' and 'Jaywan.'
PhonePe expects to receive final approvals from regulators before commencing commercial operations in the UAE. This focus on the UAE comes against the backdrop of the temporary suspension of the company's initial public offering (IPO) plans in March due to the war in West Asia and increased market volatility.
The company emphasized that as part of its market strategy, PhonePe aims for deep integration into the ecosystem. After receiving final authorization, it plans to collaborate with regional banks, licensed payment service providers, and local technology vendors to promote the cashless economy concept established by the UAE leadership.
Previously, co-founder and CEO of PhonePe, Samir Nigam, stated that the obtained licenses will allow the company to offer consumer payment tools, such as gift cards and wallets, as well as provide infrastructure for merchants to accept electronic payments.
This marks the first international market where the Bengaluru-based company will conduct local operations. In partnership with NPCI International Payments Limited (NIPL), PhonePe currently allows travelers from India to scan local QR codes and instantly pay for purchases through NEOPAY and Network International terminals under existing cross-border agreements.