Apple Pay finally comes to India, starting October 

Apple is preparing to bring Apple Pay to India, with the service expected to launch as early as next month in partnership with Axis Bank, according to people familiar with the matter cited by Reuters. The rollout would mark Apple’s formal entry into one of the world’s largest digital payments markets, more than a decade after Apple Pay was first introduced globally. 

The initial launch is expected to support Axis Bank credit cards, making the lender Apple’s first banking partner for Apple Pay in India. Apple is also in discussions with other major private-sector banks, including HDFC Bank and ICICI Bank, although commercial terms with those lenders have not yet been finalised, Reuters reported. 

The move is significant because India presents Apple with a very different payments landscape from many of the markets where Apple Pay has become established. The country’s digital payments ecosystem is dominated by the Unified Payments Interface, or UPI, which accounts for about 84% of digital transaction volume. UPI has made QR-code and account-to-account payments an everyday habit for consumers, from large retailers to small roadside businesses.  

Apple Pay takes a different route. Rather than requiring a separate payment application, it allows users to add eligible cards to Apple Wallet and make contactless payments using an iPhone or Apple Watch. Card information is tokenised, meaning the actual card number is not shared with merchants during a transaction. Apple says Wallet is designed around security and privacy, with payment cards securely associated with a user’s Apple Account and protected through encryption.  

That makes the Indian opportunity both substantial and complicated. Apple has been steadily expanding its footprint in the country. Reuters estimates that the company has captured about 8% of India’s smartphone market since 2022, giving it a sizeable installed base of potential Apple Pay users. Axis Bank, meanwhile, had about 16.26 million active credit cards in July, according to Reserve Bank of India data.  

The regulatory environment has also become more conducive to contactless card payments. RBI rules permit contactless card transactions without an additional authentication factor for transactions up to ₹2,000, subject to the applicable conditions. There is, however, a shadow lurking over UPI given the new MDR charges mooted. 

For Apple, however, the bigger question may be whether Apple Pay can become part of India’s everyday payments behaviour rather than simply serve as a premium convenience for iPhone owners. 

The phased rollout suggests Apple is taking a measured approach. Beginning with one bank and expanding incrementally would allow it to establish the card-payment ecosystem before adding more issuers. Reuters reported that discussions with HDFC Bank and ICICI Bank are already under way. 

The launch also comes as India’s payments market itself is entering a new phase. From October 15, NPCI is introducing a 0.4% merchant discount rate on specified UPI person-to-merchant transactions above ₹2,000, while keeping person-to-person payments free and exempting several categories.  

Apple Pay therefore arrives at an interesting moment. India already has a deeply embedded digital payments habit. Apple’s challenge will be to persuade millions of consumers who have become comfortable scanning a QR code that simply tapping an iPhone can be worth making room for in their financial lives.