PhonePe to enter UAE in first overseas expansion

Domestic fintech major PhonePe, which commands the largest share of India's UPI payments market, is set to begin operations in the UAE, marking its first foray into an overseas market.

The company has secured a licence from the Central Bank of the UAE and will soon operationalise it, PhonePe Founder and Chief Executive Sameer Nigam said on Wednesday.

“PhonePe will be launching its local operations in the UAE as our first foreign market,” Nigam told reporters on the sidelines of the annual Global Fintech Festival here.

He said the company aims to build a global business over the next decade.

The UAE licence will allow PhonePe to offer a range of services in the country, including its own wallet and gift cards, remittance services for the Indian diaspora and local merchant acquiring, Nigam said.

The company also plans to enable payments at local points of sale and facilitate money transfers to India.

“If you are a UAE citizen, hopefully in the near future you will be able to make payments on a UAE point of sale (PoS) device and also send money to India,” he said.

PhonePe's overseas expansion comes as the fintech firm, which is preparing for an initial public offering (IPO), looks to broaden its operations beyond India.

Nigam declined to comment on the possible introduction of a merchant discount rate (MDR) for UPI transactions in India.

However, he quipped that he would be able to speak about the company's share sale once there is greater clarity on the MDR issue.