PhonePe goes to UAE, Users can now make UPI payments via NEOPAY terminals

After dominating the Indian market, Digital payments giant PhonePe is expanding its operations to the United Arab Emirates (UAE). 

The company said that Indian users visiting the UAE can now effortlessly make payments through UPI at Mashreq Bank’s NEOPAY terminals. Interestingly, the service spans across retail, dining, and tourist locations, enabling transactions by scanning a QR code.

The process debits the user's account in Indian Rupees (INR), reflecting the current exchange rate. 

Partnering with Mashreq

“We are thrilled to announce our partnership with Mashreq. UAE is a very popular destination, with millions of Indian visitors every year," said Ritesh Pai, CEO of International Payments at PhonePe. 

"With this partnership, customers can now conveniently transact through UPI, a payment method they are familiar with. Enabling digital payments not only reflects PhonePe’s commitment to convenience but also embraces the evolving needs of today’s travelers. This collaboration opens doors to seamless transactions, ensuring a smoother and more enjoyable journey for visitors," Pai said.

Partnership facilitated by NPCI International

The partnership between PhonePe and Mashreq Bank is facilitated by NPCI International Payments Limited (NIPL), aiming to integrate UPI's seamless payment method within the UAE's payment ecosystem.

Anubhav Sharma, Deputy Chief – Partnership Business Development & Marketing, NIPL, said, “We aim to actively collaborate with financial institutions around the world, fostering partnerships to deliver convenient and secure cross-border payment solutions for consumers. This partnership encourages fintech collaboration and unifies the ecosystem to streamline payment processes for Indian travellers to UAE.”

The development is part of PhonePe's vision of expanding digital payment accessibility globally.

A boon for Indian expatriates

The development is particularly beneficial for Indians living in the UAE as it allows them to link their NRE (Non-Resident External) and NRO (Non-Resident Ordinary) bank accounts directly to the PhonePe app. This means they can make digital payments easily without having to use international bank cards. 

Vibhor Mundhada, CEO of NEOPAY at Mashreq, added, “We are delighted to collaborate with PhonePe to offer yet another new payment solution for Indian tourists and visitors in the UAE, helping further cement the already strong financial relations between the two countries. This latest launch underscores our commitment to incorporating innovation and technology into our operations, and to providing the solutions and experiences our customers want and need.”

PhonePe's future plans

Looking ahead, PhonePe plans to introduce inward remittance services, leveraging the UPI infrastructure to simplify money transfers. The service aims to eliminate the complexities of traditional bank transfers, such as the need for bank account numbers and IFSC codes, thereby facilitating smoother financial transactions.