Apple Pay Eyes India Launch Next Month With Axis Bank
Apple is reportedly preparing to launch its Apple Pay service in India as early as next month, with Axis Bank set to be its initial banking partner.
Apple could launch its Apple Pay service in India as early as next month, according to a Reuters report. Axis Bank is expected to be the first banking partner for the initial rollout.
The iPhone maker plans to first enable Axis Bank credit cards on the service before adding other lenders over time. This bank-by-bank approach would mirror the phased strategy Apple used in other markets. The company has also held discussions with HDFC Bank and ICICI Bank, but those lenders have not yet agreed on commercial terms with Apple.
Questions sent to Apple by the publication remained unanswered. The story will be updated if a response is received.
A Long-Awaited Market Entry
A launch would end Apple's nearly decade-long effort to bring its payment service to India. It is one of the few major markets where Apple Pay is currently unavailable. Apple first indicated plans for an India launch in 2017, but the rollout faced regulatory and technical obstacles.
These hurdles included India's data localisation requirements and challenges around integrating with the Unified Payments Interface (UPI). A key regulatory shift came last year when the Reserve Bank of India allowed alternative authentication mechanisms, including biometrics, for card payments. This change enabled services like Apple Pay to authenticate transactions using Face ID or Touch ID with Indian bank cards.
How Apple Pay Works
Apple Pay allows users to make contactless payments using tokenised card details stored on their iPhones or Apple Watches. Transactions are authenticated using Face ID, Touch ID, or a device passcode without needing to open a separate payments app.
The service's addressable user base in India will initially be limited to Apple device owners who hold credit cards from participating banks. Axis Bank is India's fourth-largest credit card issuer, behind HDFC Bank, SBI Cards, and ICICI Bank. It had approximately 16.26 million active credit cards in circulation as of July.
Entering a UPI-Dominated Market
Apple Pay will launch into a digital payments landscape overwhelmingly led by UPI. The homegrown system accounts for roughly 84% of India's digital payment volumes. UPI also supports contactless transactions through a feature called UPI Tap & Pay, which lets users tap NFC-enabled smartphones on compatible terminals.
However, UPI Tap & Pay processes transactions through the UPI network, unlike Apple Pay's expected card-based offering. Apple has also held talks with major card networks like Mastercard and Visa for the India launch.
Reportedly, the company has faced friction over the division of transaction fees. Apple has sought a 15-20 basis point share of the interchange fee on Apple Pay transactions, while some banks have proposed a lower share of around 10 basis points.
