India, Sept. 22 -- Walmart-backed PhonePe has received in-principle approval from the Central Bank of the UAE (CBUAE) for two payment licences, taking the IPO-bound fintech major closer to launching its first locally regulated payments operation outside India.

The approvals cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF). While the RPSCS licence covers regulated retail payment services, the SVF licence permits the issuance and operation of stored-value products such as digital wallets.

However, the in-principle approvals do not allow PhonePe to immediately begin commercial operations. The fintech major will have to fulfil the remaining regulatory requirements and secure final approval from the CB...