PhonePe, the Indian digital‑payments platform backed by Walmart, announced on Tuesday that it has secured in‑principle approval from the United Arab Emirates central bank for two licences covering retail payment services, card‑scheme operations and stored‑value facilities. The approval follows an initial regulatory due‑diligence review, and the company now awaits final sign‑off before it can launch commercial services in the Gulf state.
Strategic expansion into the Gulf
Founded in 2016, PhonePe offers a payments app that enables users to recharge mobile phones, pay utility bills and transfer money using India’s Unified Payments Interface (UPI) network. The UAE approval marks the fintech’s first major foray outside India, aligning with its broader strategy to tap high‑growth markets and diversify its revenue base.
“Upon receipt of final regulatory approval, the company looks forward to collaborating with regional banks, licensed payment service providers, and local technology vendors,” PhonePe said in a statement. The firm expects the partnership model to create jobs and introduce competitive digital‑payment options for consumers and businesses in the UAE.
Impact on investors and valuation
Earlier this year, PhonePe placed its highly anticipated initial public offering on hold, citing geopolitical uncertainty and volatile global market conditions. The company has indicated that it will revive the listing process once market stability improves. Analysts note that the UAE licence could bolster investor confidence by demonstrating the firm’s ability to expand internationally.
PhonePe is targeting a valuation of $9 billion to $10.5 billion in the IPO, according to two sources with direct knowledge of the matter. The filing disclosed that Walmart plans to reduce its stake in the fintech by about 12 % through the offering, while existing investors Tiger Global and Microsoft intend to fully exit.
What this means for the fintech landscape
The UAE’s move to grant licences to a foreign‑owned digital‑payments provider underscores the Gulf’s commitment to fostering a competitive, innovation‑driven financial ecosystem. By welcoming PhonePe, regulators signal openness to partnerships that can enhance consumer choice, improve payment efficiency, and support the region’s broader digital‑economy goals.
For Indian expatriates and businesses operating in the UAE, the development promises a familiar, UPI‑compatible payment experience, potentially reducing transaction costs and streamlining cross‑border commerce.
Looking ahead
PhonePe’s next steps hinge on securing the final regulatory green light. Once granted, the company plans to roll out its services in collaboration with local banks and technology firms, aiming to capture a share of the UAE’s rapidly growing digital‑payments market.
Stakeholders will be watching closely to see how quickly PhonePe can translate its licence approval into tangible services and whether the move will accelerate its path to a public listing.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
