Apple is poised to launch Apple Pay in India next month using Axis Bank credit cards, according to three sources familiar with the matter, entering a crowded digital payments market as the tech giant expands support among local lenders.
The upcoming rollout, starting with a single major banking partner, will bring the U.S. company’s tap-and-pay service to the world’s most populous country, according to reports by Reuters. India remains one of the few major global economies where Apple Pay has not been available to consumers.
Axis Bank Partnership Leads the India Rollout
Mumbai-based Axis Bank stands as the fourth-largest credit card issuer in the country, boasting 16.26 million active credit cards as of July, according to Reserve Bank of India (RBI) data cited by Reuters. By launching with Axis Bank, Apple secures a solid foundational partner while continuing discussions with larger private sector rivals.
All three sources spoke on condition of anonymity because the negotiations remain private. When contacted by reporters, Apple and HDFC Bank did not respond to requests for comment, while ICICI Bank and Axis Bank issued "no comment" responses.
Navigating India’s Crowded Digital Payments Ecosystem
Apple Pay will enter a digital payments market heavily dominated by domestic infrastructure. Payments via the home-grown Unified Payments Interface (UPI) account for 84% of India’s total digital payments volume, utilizing QR codes, phone numbers, and domestic tap-and-pay options.
Last year, the Reserve Bank of India permitted biometric authentication for card payments. This regulatory shift enables Apple Pay to function seamlessly with Indian bank cards by utilizing Face ID and Touch ID on user devices, allowing tap-and-pay purchases via tokenised card details without requiring a separate payments app.
Phased Expansion Plans for Additional Lenders
Apple plans to incorporate more lenders over time through direct, bank-by-bank agreements, following a phased rollout strategy the company has deployed in other international markets, according to one of the sources.
The expansion aligns with a surge in the company’s hardware footprint. Apple’s share of the Indian smartphone market has doubled to 8% since 2022, according to data from Counterpoint Research, cementing the country as one of the firm’s largest markets worldwide.
Did you know? Apple Pay relies on tokenisation to secure transactions, meaning your actual credit card number is never stored on your device or shared with merchants during a tap-and-pay purchase.
Frequently Asked Questions
When is Apple Pay launching in India? Apple plans to launch Apple Pay in India next month, starting with Axis Bank credit cards, according to sources familiar with the discussions.
Which banks will support Apple Pay initially? Axis Bank will serve as the initial launch partner. Discussions with larger competitors HDFC Bank and ICICI Bank are ongoing, but commercial terms have not yet been finalized.
How does Apple Pay work with Indian regulations? Following a Reserve Bank of India rule change allowing biometric authentication for card payments, Apple Pay will support Face ID and Touch ID for verifying transactions using tokenised card details.
What dominates India’s digital payments market? The home-grown Unified Payments Interface (UPI) dominates the market, accounting for 84% of India’s digital payments volume through QR codes, phone numbers, and native tap-and-pay methods.
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