Apple plans to launch its Apple Pay service in India as soon as next month, partnering initially with Axis Bank. This move comes after nearly a decade of delays due to regulatory and technical challenges.
- Apple Pay to debut in India initially with Axis Bank credit cards
- Rollout delayed since 2017 by regulatory and integration challenges
- India's payment market predominantly led by UPI with 84% volume share
What happened
Apple is set to introduce its Apple Pay service in India possibly as early as next month, starting with a partnership with Axis Bank. The initial launch will include support for Axis Bank credit cards, with plans to gradually onboard other lenders through direct agreements. Apple has engaged in talks with additional major banks like HDFC Bank and ICICI Bank, though these have yet to result in finalized commercial terms.
This anticipated launch follows nearly a decade of preparations, beginning in 2017 when Apple first announced plans to bring Apple Pay to India. The rollout faced delays from regulatory requirements such as the country’s strict data localization laws and technical challenges integrating with the Unified Payments Interface (UPI), India’s dominant payments system.
Why it matters
Apple Pay’s debut in India marks a significant expansion for the service into one of the world’s largest and fastest-growing digital payments markets. Despite India’s payments ecosystem being heavily dominated by UPI, Apple Pay offers a different approach by enabling contactless payments via tokenized card networks authenticated with biometric options like Face ID or Touch ID.
Axis Bank, India’s fourth-largest credit card issuer with over 16 million active cards, gives Apple Pay a solid initial user base among premium customers who own Apple devices. However, the market remains challenging due to entrenched UPI usage and ongoing negotiations between Apple and banks over revenue sharing on transaction fees.
What to watch next
The success of Apple Pay in India will depend on how quickly Apple can onboard additional banks and card networks beyond Axis Bank, including HDFC Bank and ICICI Bank, which are yet to finalize deals. Industry watchers will also be attentive to how the revenue sharing agreements evolve, as Apple has sought a 15-20 basis points share of interchange fees while banks have pushed for lower terms.
Additionally, Apple Pay’s ability to gain adoption in a market with a dominant UPI ecosystem that supports contactless NFC transactions will be crucial. Monitoring customer uptake, merchant acceptance, and potential regulatory shifts will provide insight into Apple Pay's competitive positioning in India's rapidly evolving digital payments landscape.