PhonePe Enters UAE With First International Local Operations

PhonePe is taking its payments business outside India for the first time, with the UAE becoming its first international market for local operations. The company has secured two licences from the Central Bank of the UAE for its planned services. 

The move gives PhonePe scope to offer wallets, gift cards and consumer payment products while also providing payment acceptance infrastructure to UAE merchants. 

UAE Becomes PhonePe's First Overseas Market 

PhonePe Co-founder and CEO Sameer Nigam confirmed the UAE launch at the Global Fintech Fest 2026 in Mumbai. He said the company's first international licences were issued by the Central Bank of the UAE. 

The licences will allow PhonePe to operate across consumer payments and merchant acquiring in the country. The source does not provide a specific launch date. 

PhonePe To Work with UAE's Aani Network 

The UAE has its own domestic payment rail, Aani, which is already connected with UPI. PhonePe's new licences give it room to build payment services around this existing connection. 

Nigam said UAE-based users could eventually be able to make payments at local POS devices. He also pointed to the possibility of sending money between the UAE and India. 

Remittances Could Become a Use Case 

The planned UAE presence could support payment flows between the two countries, including potential remittance services. PhonePe also expects its UAE operations to facilitate transactions for users registered in the country. 

However, the company has not disclosed specific transaction targets, merchant numbers or a timeline for these services. 

PhonePe Joins Growing International UPI Footprint 

UPI already has a presence in several overseas markets, including France, Qatar, Bhutan, Cambodia, Singapore, Sri Lanka and Mauritius. Deployments are also underway in other regions. 

PhonePe's move comes as Indian fintech companies look beyond the domestic market. The source also mentions Paytm's expansion into Indonesia and Luxembourg, along with its international operations through Paytm Arab Payments. 

Read More: PhonePe Expands Card Payments with Visa Through Tap to Pay, Smart Accept Solutions! 

Conclusion 

The UAE will be PhonePe's first market with a local international operation, extending its business beyond India's UPI ecosystem. Its new licences cover consumer payments, wallets, gift cards and merchant acquiring, while India-UAE money transfers remain a potential future use case. 

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