Indian digital payments company PhonePe has received in-principle approval from the Central Bank of the United Arab Emirates for two payment licenses, moving the Walmart-backed fintech closer to locally regulated operations in its first overseas market.

The approvals cover Retail Payment Services and Card Schemes and Stored Value Facilities, Reuters reported. PhonePe still needs final regulatory approval before it can begin commercial operations in the UAE.

From cross-border UPI use to local licensing

PhonePe is one of India’s largest consumer payments platforms. A UAE license would take the company beyond enabling Indian users to make UPI-linked transactions abroad and toward operating a regulated local payments business.

The company said it plans to work with regional banks, licensed payment providers and local technology partners after final approval. Local reports also said PhonePe is exploring integration with UAE payment rails including Aani and Jaywan.

International expansion comes as IPO waits

PhonePe postponed its planned initial public offering earlier this year amid geopolitical uncertainty and volatile markets. Reuters has reported that the company had been seeking a valuation of roughly $9 billion to $10.5 billion.

The in-principle approval should not be treated as permission to launch immediately. Final central-bank authorization and compliance requirements still apply.

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