Apple Pay is heading to India next month with Axis Bank first, Reuters reports
Apple to Launch Apple Pay in India with Axis Bank
Apple plans to roll out its mobile payment platform, Apple Pay, in India next month, beginning with credit cards issued by Axis Bank. The service will later be extended to additional lenders through separate agreements, following the bank‑by‑bank model Apple has used elsewhere.
Launch Details and Bank Partnerships
Axis Bank, the country’s fourth‑largest credit‑card issuer with 16.26 million active cards as of July, will be the first partner. Apple has also been in talks with HDFC Bank and ICICI Bank, both larger issuers, but commercial terms have not yet been finalized with either. All parties declined to comment on the negotiations.
Background and Regulatory Environment
Negotiations between Apple and Indian banks date back to at least February, when Bloomberg first reported that Apple was exploring a payments service in the market. An August report by the Economic Times said the target launch month was October, that the initial rollout would support only Visa and Mastercard credit cards, and that Apple sought a fee of 15 to 20 basis points per transaction while banks countered with offers near 10 basis points.
Impact of Regulatory Changes
A key factor enabling the launch is the Reserve Bank of India’s authentication directions, issued in September 2025 and effective since April. Those rules let card issuers give customers a choice of authentication methods, including device‑native biometrics such as Face ID or Touch ID, instead of requiring an SMS one‑time password for every purchase. This regulatory shift removed a major barrier that had previously prevented Apple Pay from entering the Indian market.
Market Context and Apple’s Strategy
Apple’s share of the Indian smartphone market has risen to 8% since 2022, doubling its presence and giving the company a foothold among consumers who are more likely to hold premium credit cards. Apple typically expands its payment service one market at a time, negotiating terms privately with each issuer rather than announcing a single global launch date. While Apple has not set an official launch day, the partnership with Axis Bank marks a concrete step forward.
Future Prospects and UPI Support
India’s digital‑payments landscape is dominated by the Unified Payments Interface, which processes roughly 84% of digital transaction volume. Apple Pay’s initial offering will not include UPI support, focusing instead on card‑based payments that can now leverage biometric authentication under the new RBI rules. As Apple continues to grow its presence in India, observers will watch how the company adapts its service to a market where card usage has been declining but regulatory conditions are becoming more favorable.
Source: thenextweb.com · 2026-09-18