Apple Pay India Launch
Apple Pay prepares for India launch next month through an initial partnership with Axis Bank.
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Key Points
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Axis Bank is India’s fourth-largest credit-card issuer, with 16.26 million active credit cards in July, and trails HDFC Bank, SBI Cards and ICICI Bank in card issuance.
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Apple Pay enables iPhone users to make tap-and-pay purchases without opening a separate payments app, using tokenized card details stored on the device.
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A Reserve Bank of India decision last year allowing biometric authentication for card payments cleared the way for Apple Pay transactions authenticated through Face ID or Touch ID with Indian bank cards.
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Apple’s share of India’s smartphone market has doubled to 8% since 2022, according to Counterpoint Research, making India one of the company’s largest markets.
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India’s UPI system supports payments through QR codes, phone numbers and tap-to-pay transactions, rather than being limited to one payment method.
Apple is preparing to launch Apple Pay in India next month, starting with PYMNTS Axis Bank as its first banking partner. The tech giant is still negotiating with larger lenders HDFC Bank and ICICI Bank, with talks stalled over transaction fees. The service will initially let iPhone users tap-and-pay using tokenized Visa and Mastercard credit cards, with UPI integration possible later.
India represents one of Apple's largest smartphone markets, with the company's share Counterpoint Research doubling to 8% since 2022. Yet Apple faces a steep climb — UPI already accounts for 84% of India's digital payments, making a bank-by-bank rollout risky in a market dominated by one payment method.
Why Axis Bank First, Not HDFC or ICICI?
Axis Bank ranks as India's fourth-largest credit card issuer with 16.26 million active cards as of July, PYMNTS trailing HDFC Bank, SBI Cards, and ICICI Bank. The smaller lender likely proved more willing to negotiate Apple's terms — bigger competitors HDFC and ICICI have reportedly halted talks over transaction commissions that Apple demands. Axis Bank's partnership suggests Apple will pursue a gradual rollout, adding more banks only after proving the model works.
How Apple Pay Works With Indian Bank Cards
Apple Pay lets iPhone users make contactless purchases by holding their phone near a reader — no app opening required. The service stores Finance Feeds tokenized card details on the device, encrypting sensitive information. Face ID or Touch ID authenticates each transaction, a capability the Reserve Bank of India approved last year specifically for card payments on devices like iPhones.
The UPI Problem: Apple Pay Enters a One-Method Market
Apple faces an unusual obstacle in India. Finance Feeds UPI handles 84% of all digital payments, letting users send money via QR codes, phone numbers, and tap-to-pay — all in a single system. Most Indians already have free UPI access through their phones and banks. Apple Pay's credit card focus means charging fees in a market accustomed to zero-cost transfers, making adoption harder than in markets like the US or Europe.
Bigger Banks Still Negotiating Behind the Scenes
MacDailyNews HDFC Bank and ICICI Bank control larger card portfolios than Axis, giving them more leverage in talks with Apple. Both lenders have reportedly stalled negotiations over how much they'll pay Apple per transaction. Apple's typical model involves taking a cut of each payment — a practice that works for credit cards but conflicts with India's competitive, commission-free UPI ecosystem where banks compete on customer volume, not fees.
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