Can You Use PhonePe in Dubai? A Complete Guide for Indian Travellers and NRIs

Last Updated on September 3, 2026 by Shitiz Srivastava

Surprisingly Yes.

PhonePe now works in Dubai and across the UAE, thanks to a partnership between PhonePe and Dubai-based Mashreq Bank.

This means Indian tourists, business travellers, and NRIs living in the UAE can use the app they already trust at home to pay for shopping, dining, and daily expenses in Dubai.

Here’s everything you need to know about how it works, where you can use it, and what to watch out for.

How PhonePe Works in the UAE

PhonePe’s UPI International service is enabled through Mashreq Bank’s NEOPAY terminals, which are installed at a wide network of retail stores, restaurants, cafes, and tourist attractions across Dubai and the wider UAE.

Rather than creating a new UAE-specific account, users simply activate an international payments feature on their existing Indian PhonePe app.

The payment itself is processed through UPI (Unified Payments Interface), the same system Indians use for everyday transactions back home.

When you scan a NEOPAY QR code in Dubai, the amount is converted from AED to INR at the prevailing exchange rate, and your linked Indian bank account is debited in rupees.

How to Activate PhonePe for International Use

Before you travel, or once you land in Dubai, you’ll need to switch on UPI International within the app:

1. Open the PhonePe app and tap your profile picture
2. Go to “Payment Settings” and select “UPI International”
3. Tap “Activate” against the bank account you want to use
4. Enter your UPI PIN to confirm

Once activated, you’re ready to pay.

Note that this activation typically stays valid for a limited window (commonly around seven days), after which you may need to reactivate it if you’re travelling for longer.

Making a Payment in Dubai

Using PhonePe at a NEOPAY terminal is straightforward:

• Look for the NEOPAY or UPI acceptance mark at the checkout counter
• Open PhonePe and scan the QR code displayed at the terminal
• Confirm the amount, which will show both the AED value and the converted INR amount
• Authorize with your UPI PIN

The transaction completes instantly, just as it would for a payment inside India.

Can NRIs Living in the UAE Use PhonePe Too?

Yes. NRIs residing in the UAE aren’t limited to using an Indian mobile number anymore.

Since a 2023 NPCI circular, NRIs from several countries including the UAE can register on UPI apps like PhonePe using their local UAE mobile number, provided it’s linked to an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank account in India.

This makes it easier for the Indian diaspora in Dubai to use UPI without keeping an active Indian SIM card.

Where Can You Use It?

NEOPAY terminals are placed across a broad merchant base in the UAE like retail shops, restaurants, cafes, and tourist and leisure destinations etc.

Beyond Mashreq’s network, UPI acceptance in the UAE has also expanded through partnerships with other payment processors, giving Indian travellers fairly wide coverage across Dubai’s shopping and dining scene, though it’s still not as universal as cash or card payments but is growing in popularity over time.

A Few Practical Things to Keep in Mind

• Your account is debited in Indian Rupees, not UAE Dirhams, so factor in the currency conversion rate shown at the terminal, which you must keep in mind.
• Currency conversion charges and any applicable bank fees may apply, so it’s worth comparing this cost against using an international debit or credit card for larger purchases, so know that before using PhonePe
• Not every merchant in Dubai accepts UPI yet, always carry a backup payment method such as a card or some cash because the system of PhonePe is still gaining acceptance.
• Keep your Indian bank account and mobile number linked and active, since the transaction routes back through your home bank in India.

The Bigger Picture

This move is part of a larger push by India’s National Payments Corporation of India (NIPL) to expand UPI acceptance abroad, with tie-ups across UAE payment networks.

For millions of Indian tourists and residents who already rely on PhonePe daily, being able to use the same app in Dubai removes a real point of friction as there is no need for excess currency exchange or juggling multiple cards during a trip.