PhonePe Announced International Expansion and Lending Focus
The payments firm has secured new licenses in the UAE and plans to prioritize lending services for future growth.
Updated on Oct. 6, 2026 in Financial Services
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PhonePe founder Sameer Nigam revealed plans to expand the company's lending services and move into international markets. The firm recently secured in-principle approval from the Central Bank of the UAE for two licenses.
Why it matters
The company waited to enter the lending sector until its primary payments business reached sustainable profitability. This focus on long-term sustainability follows the withdrawal of a previous initial public offering, as the firm aims to meet investor expectations for profit growth.
PhonePe currently serves approximately 500 million users and supports between 25 million and 30 million active merchants. The company now aims to increase its financial services reach by a factor of 100x.
The players
Sameer Nigam
He is the founder of PhonePe who announced the company's shift toward lending and international markets.
PhonePe
It is a digital payments company that has grown to support millions of merchants and users.
Central Bank of the UAE
This is the regulatory authority that granted in-principle approval for two licenses to the firm.
The details
PhonePe plans to make lending its primary focus area over the next two to three years. By leveraging digital distribution to lower operational costs, the firm intends to transition from its established payment rails to broader financial offerings, including mutual fund distribution.
Timeline
2016 marked the beginning of PhonePe's first decade of operations.
The Moneycontrol Startup Conclave 2026 occurred in October 2026.
Lending will remain the firm's primary focus for the next 2-3 years.
Market Landscape
The company's pivot toward lending highlights a shift from pure-play payment processing to a broader ecosystem of high-margin financial services. This strategy positions the firm to compete more aggressively in the retail credit market after prioritizing sustainable payment profitability.
Customers may soon see a wider range of lending and investment products integrated into their existing payment apps. The company's expansion is designed to make financial services more accessible through digital delivery channels.
The takeaway
The move demonstrates how digital payment firms are pivoting toward lending to satisfy investor demands for scalable profit. Consumers should watch for new credit offerings as the company attempts to extend its reach into global markets.
Further reading
Learn more about the latest developments in Financial Services.
Source note: This article includes information reported by MoneyControl.
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