ET Government reports: Central Bank of UAE grants in-principle payment licenses to PhonePe
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What happened
The Central Bank of the UAE has granted Indian digital payments company PhonePe in-principle approval for two licenses covering Retail Payment Services, Card Schemes, and Stored Value Facilities. PhonePe plans to work with local payment providers Aani and Jaywan to offer regulated services in the country.
Why it matters
The decision provides PhonePe a regulatory foundation to enter the UAE digital payments market. Integrating with established local payment networks allows the firm to offer compliant retail and stored-value services within existing domestic payment systems.
Bigger picture
The approval aligns with the UAE's initiative to transition toward a cashless economy by integrating foreign fintech platforms into national payment infrastructure while preserving central bank oversight.
Watch next
Watch for PhonePe to fulfill the final regulatory conditions required to convert its in-principle approval into full operating licenses and launch joint service offerings.