Apple is preparing to bring its Apple Pay service to India as early as October, marking the company’s entry into one of the world’s largest digital payments markets. The initial rollout is expected to be in partnership with Axis Bank, with the service beginning with Axis Bank credit cards, according to a Reuters report citing three people familiar with the plans.
The move could give Apple a new foothold in India’s rapidly expanding digital payments ecosystem, where the Unified Payments Interface (UPI) currently dominates transaction volumes.
Apple Pay to Begin With Axis Bank Cards
According to the Reuters report, Axis Bank is expected to be Apple’s first banking partner for the India rollout. Apple has also held discussions with other major private sector lenders, including HDFC Bank and ICICI Bank, although commercial terms with those banks have not yet been finalised.
Apple Pay allows users to make contactless payments using an iPhone or Apple Watch, with card details securely tokenised and stored on the device. This means users can make tap-and-pay transactions at compatible payment terminals without opening a separate payment application.
The India rollout is expected to follow a phased approach, with additional banks potentially being added later.
Apple Enters a UPI-Dominated Market
Apple Pay’s arrival comes at a significant time for India’s digital payments sector. UPI accounts for around 84% of digital transaction volume in the country, making India one of the world’s most advanced real-time payments markets.
Apple’s challenge will therefore be to establish a card-based payment experience in a market where consumers are already accustomed to scanning QR codes and making instant bank account payments through apps such as PhonePe and Google Pay.
However, Apple Pay could appeal to iPhone users who already use credit cards for everyday purchases and prefer the convenience of contactless payments.
Also Read: NSE IPO Fully Subscribed: What Investors Should Know Before the September 21 Closing Date
Regulatory Changes Could Support Apple Pay
Recent changes to India’s payment authentication framework could also support Apple’s entry. The country has moved towards allowing biometric authentication for card payments, which aligns with Apple’s use of technologies such as Face ID and Touch ID for payment authentication.
Apple’s position in India’s smartphone market has also strengthened in recent years. Reuters reported that the company has captured an 8% share of India’s smartphone market since 2022, providing it with a growing installed base of potential Apple Pay users.
For Axis Bank, the partnership could also provide access to Apple’s growing premium user base. RBI data cited by Reuters showed that Axis Bank had approximately 16.26 million active credit cards as of July.
Apple has not officially announced the India launch yet, and the exact launch date and broader bank partnerships could still change.
