SUMMARY
Facilitated by UPI, the service will only be available at Mashreq Bank’s NEOPAY terminals
Users can simply scan the QR code, and the account will be debited in INR at current currency exchange rates
NRIs with UAE mobile numbers can also link their existing NRE and NRO accounts to their PhonePe app to make payments
Fintech giant PhonePe
on Thursday (March 28) said its users can now make digital payments in the UAE. Facilitated by UPI, the service will only be available at Mashreq Bank’s NEOPAY terminals.
Under this, users can simply scan the QR code, and the account will be debited in INR at current currency exchange rates. This collaboration has been facilitated through Mashreq’s partnership with NPCI International Payments Limited (NIPL). NIPL is the international arm of NPCI.
Additionally, NRIs with UAE mobile numbers can also link their existing NRE (Non-Resident (External)) and NRO (Non-Resident (Ordinary)) accounts to their PhonePe app to make payments.
PhonePe also intends to introduce inward remittance services once inward remittances are enabled by the authorities.
“UAE is a very popular destination, with millions of Indian visitors every year. With this partnership, customers can now conveniently transact through UPI, a payment method they are familiar with. This collaboration opens doors to seamless transactions, ensuring a smoother and more enjoyable journey for visitors,” said Ritesh Pai, CEO of PhonePe’s International Payments.
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Chiming in, Anubhav Sharma, deputy chief of partnership business development and marketing at 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.”
It is pertinent to note that the NPCI has also partnered with other financial institutions in the UAE such as Arab Monetary Fund via Buna and Network International. The digital payments infrastructure was also linked with the UAE’s instant payments platform AANI in February this year to facilitate cross-border transactions between the two countries.
The two countries recently also signed an agreement to interlink their domestic card networks (RuPay from India and JAYWAN from the UAE) to enhance the acceptance of RuPay across the Middle Eastern country. Prime Minister Narendra Modi launched RuPay card services during his trip to the UAE earlier this year.
Meanwhile, UPI continues to witness rapid growth and traction in the country. UPI logged a record 11,768 Cr transactions worth INR 182.84 Lakh Cr in 2023. In February this year, the payments infrastructure clocked 1,210 Cr transactions worth INR 18.28 Lakh Cr.
Walmart-owned PhonePe continues to be the biggest player in the UPI payments space, followed by Google Pay. Together the two players account for a cumulative market share in excess of 80%.
Notwithstanding this, PhonePe continues to post heavy losses. Its net loss jumped 39% YoY to INR 2,795.3 Cr in FY23 while operating revenue surged 77% YoY to INR 2,913.7 Cr.
