PhonePe Gains In-Principle Approval for UAE Payment Licenses

Indian digital payments giant PhonePe announced Tuesday it has received in-principle approval from the central bank of the United Arab Emirates for two key payment licenses. The move marks a significant step in the Walmart-backed company's plans for international expansion.

Details of the Approval

The preliminary approvals cover licenses for retail payment services, card schemes, and stored value facilities, according to the company. This follows an initial phase of regulatory due diligence.

PhonePe must still secure final approval from the UAE central bank before it can commence commercial operations. Once fully licensed, the company said it plans to collaborate with regional banks, licensed payment service providers, and local technology vendors to launch its services in the Gulf state.

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IPO Plans and Company Background

This international push comes as PhonePe weighs a public listing. The company postponed its initial public offering earlier this year, citing geopolitical uncertainty and volatile global market conditions, but has indicated it will restart the process once markets stabilize.

• In March, Reuters reported that PhonePe was seeking a valuation between $9 billion and $10.5 billion in its IPO, citing sources with direct knowledge of the matter.
• The IPO filing showed that majority-owner Walmart plans to reduce its stake by approximately 12%.
• Other existing investors, including Tiger Global and Microsoft, intend to fully exit their positions through the offering, according to the report.