PhonePe Enables UPI Payments for Indian Travelers in UAE

Fintech giant PhonePe has announced that its users can now make digital payments in the UAE.

The service is facilitated by UPI and will be available exclusively at Mashreq Bank’s NEOPAY terminals.

Process Simplified with QR Code Scanning

• Users can conveniently scan the QR code, and the transaction will be processed in INR at prevailing currency exchange rates.
• This collaboration is made possible through Mashreq’s partnership with NPCI International Payments Limited (NIPL), NPCI's international arm.

Integration with NRI Accounts

• NRIs with UAE mobile numbers can link their existing NRE and NRO accounts to their PhonePe app for payments.
• This integration aims to provide a seamless experience for Indian travelers in the UAE.

Inward Remittance Services in the Pipeline

• PhonePe plans to introduce inward remittance services once authorities enable inward remittances.
• This feature will further enhance the convenience for users in managing their finances abroad.

Statements from Key Players

• Ritesh Pai, CEO of PhonePe’s International Payments, highlights the convenience this partnership brings to Indian visitors in the UAE.
• Anubhav Sharma, deputy chief of partnership business development and marketing at NIPL, emphasizes the aim of fostering fintech collaboration for cross-border payment solutions.

NPCI's Broader Partnerships in the UAE

• NPCI has partnered with various financial institutions in the UAE, including the Arab Monetary Fund via Buna and Network International.
• These collaborations aim to streamline payment processes and enhance cross-border transactions between India and the UAE.

Interlinking Domestic Card Networks

• India and the UAE have signed an agreement to interlink their domestic card networks, RuPay and JAYWAN, respectively.
• This initiative aims to boost the acceptance of RuPay cards in the UAE, further facilitating transactions for Indian travelers.

Growth and Traction of UPI

• UPI continues to witness rapid growth in India, with record transactions and transaction volumes in recent years.
• PhonePe remains a dominant player in the UPI payments space, alongside Google Pay, collectively holding a significant market share.

Financial Performance of PhonePe

• Despite its market dominance, PhonePe continues to incur heavy losses, with a significant increase in net loss in FY23.
• However, its operating revenue has also seen substantial growth during the same period.