PhonePe Secures In-Principle Approval in the UAE
PhonePe, a leading digital payments platform, has received In-Principle Approval (IPA) from the Central Bank of the UAE (CBUAE) for two key licenses: Retail Payment Services and Card Schemes (RPSCS) as well as Stored Value Facilities (SVF). This approval comes after completing the initial regulatory due diligence, allowing PhonePe to strive for final authorisation to initiate business operations.
Focus on Ecosystem Integration
PhonePe’s goal is to emphasise deep integration within the ecosystem. Once it obtains final regulatory approval, the company aims to work closely with regional banks, licensed payment service providers, and local technology innovators to further the cashless economy vision set forth by UAE leadership.
Support for Domestic Payment Systems
In addition, PhonePe plans to investigate avenues to support ‘Aani’ and ‘Jaywan’, the domestic payment systems of the UAE, by utilising its comprehensive technology platform. The firm’s technology framework is capable of handling high transaction volumes, currently supporting over 700 million registered users and 50 million merchants in India.
Enhancing Financial Infrastructure
PhonePe aims for its proposed deployment to enhance the current financial infrastructure and facilitate seamless commerce for both residents and businesses in the UAE.
Partnerships for Cross-Border Payments
Moreover, in collaboration with NPCI International Payments Limited (NIPL), PhonePe enables Indian travellers in the UAE to effortlessly scan local QR codes and make instant payments at NEOPAY and Network International terminals through existing cross-border agreements.
Next Steps for Commercial Launch
While receiving In-Principle Approval establishes PhonePe’s initial regulatory presence, the company is actively collaborating with authorities to fulfil all necessary requirements for final approval prior to its commercial launch in the UAE.
PhonePe reports that it has over 72 Crore registered users to date and a digital payments acceptance network that spans across more than 5 Crore merchants. The range of products and services it offers includes consumer payments, merchant payments, lending, insurance distribution services, as well as innovative platforms such as share.market and the Indus Appstore.