SUMMARY
The UPI-facilitated service will only be accessible at the NEOPAY terminals of Mashreq Bank.
By only scanning the QR code, users can debit their account in Indian rupees at the current exchange rate.
In order to make payments, NRIs with UAE mobile phones can also connect their current NRE and NRO accounts to the PhonePe app.
The fintech behemoth PhonePe announced on Thursday, March 28, that its customers can now utilise the UAE to make digital payments. The UPI-facilitated service will only be accessible at the NEOPAY terminals of Mashreq Bank.
Users only need to scan the QR code under this to have the account debited in Indian rupees at the current exchange rate. Mashreq’s cooperation with NPCI International Payments Limited (NIPL) has made this collaboration possible. NPCI’s international division is called NIPL.
NRIs with UAE mobile numbers can also use the PhonePe app to make payments by connecting their current NRE (Non-Resident (External)) and NRO (Non-Resident (Ordinary)) accounts.
After regulators approve inward transfers, PhonePe also plans to provide inward remittance services.
The UAE is a very well-liked travel destination, drawing millions of Indian tourists each year. Customers may now easily transact using UPI, a payment mechanism they are accustomed to, thanks to this cooperation. According to Ritesh Pai, CEO of PhonePe’s International Payments, “this partnership opens doors to seamless transactions, ensuring a smoother and more enjoyable journey for visitors.”
“We aim to actively collaborate with financial institutions around the world, fostering partnerships to deliver convenient and secure cross-border payment solutions for consumers,” Anubhav Sharma, deputy chief of partnership business development and marketing at NIPL, chimed in. This agreement promotes fintech cooperation and unifies the ecosystem to expedite payment procedures for Indian visitors to the United Arab Emirates.
It is noteworthy to mention that the NPCI has collaborated with various financial institutions in the United Arab Emirates, including the Arab Monetary Fund, through Buna and Network International. To enable cross-border transactions between the two nations, the digital payments infrastructure was also connected to the UAE’s instant payments platform, AANI, in February of this year.
Recently, the two nations also agreed to connect their respective domestic card networks—RuPay in India and JAYWAN in the UAE—in order to increase RuPay’s acceptability throughout the Middle East. Earlier this year, Prime Minister Narendra Modi visited the United Arab Emirates and introduced the RuPay card services.
In the meantime, UPI is still expanding quickly around the nation. In 2023, UPI recorded 11,768 Cr transactions totaling INR 182.84 Lakh Cr. The payments infrastructure recorded 1,210 Cr transactions valued INR 18.28 Lakh Cr in February of this year.
Google Pay and Walmart-owned PhonePe are the two major participants in the UPI payments market. The combined market share of the two companies is greater than 80%.
Despite this, PhonePe continues to report significant losses. In FY23, operating revenue increased 77% YoY to INR 2,913.7 Cr, but net loss increased 39% YoY to INR 2,795.3 Cr.
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