Apple is preparing to launch Apple Pay in India, with discussions underway with major banks including ICICI Bank, HDFC Bank, and Axis Bank, as well as global payment networks Mastercard and Visa. The anticipated rollout, targeted for around the middle of , marks a significant expansion for Apple’s payment service into a highly competitive market dominated by Google Pay, PhonePe, Amazon Pay, and Paytm.
The move comes as India’s digital payments landscape continues to rapidly evolve, fueled by the widespread adoption of the Unified Payments Interface (UPI). Apple Pay’s integration with UPI is expected to be a key component of its strategy, allowing users to seamlessly transfer funds and make payments alongside traditional card-based transactions. This support for UPI is crucial, given its dominance in the Indian digital payments space.
While Apple has a smaller market share in India compared to Android devices, the company has been steadily increasing its presence through expanded manufacturing and retail operations. The opening of a sixth Apple Store in Mumbai on Thursday, February 26, , underscores this commitment to the Indian market. Recent data from IDC indicates Apple recorded its highest quarterly shipments in India during Q3 , reaching 5 million units and securing fourth place in the market.
The timing of Apple Pay’s launch is also facilitated by recent regulatory changes in India. Late last year, the country’s central bank approved new rules enabling biometric authentication methods, such as Touch ID and Face ID, for digital payments. Previously, Indian digital payments relied heavily on one-time passwords delivered via SMS, a less secure and less convenient method. This shift towards biometric authentication aligns with Apple’s focus on security and user experience.
Apple Pay, which launched over a decade ago, is currently available in 89 markets globally. The expansion into India represents a substantial opportunity for growth, given the country’s large population and rapidly expanding middle class. However, entering this market requires navigating a complex ecosystem of existing payment platforms and regulatory requirements.
The discussions with ICICI Bank, HDFC Bank, and Axis Bank are critical to establishing the infrastructure necessary for Apple Pay to function within the Indian financial system. Collaboration with Mastercard and Visa will ensure compatibility with existing card networks. The National Payments Corporation of India, which operates and manages UPI, has not yet responded to requests for comment regarding the integration of Apple Pay with its platform.
UPI’s architecture allows Indian customers to instantly transfer money and pay bills, a feature that has driven its widespread adoption. By supporting UPI alongside card payments, Apple Pay aims to offer Indian consumers a versatile and convenient payment experience. The success of Apple Pay in India will likely depend on its ability to seamlessly integrate with UPI and provide a compelling alternative to existing digital payment solutions.
The Indian digital payments market is characterized by intense competition. Google Pay, PhonePe, and Amazon Pay have already established significant user bases and brand recognition. Paytm, a homegrown player, also holds a substantial market share. Apple Pay will need to differentiate itself through its security features, user experience, and integration with the Apple ecosystem to gain traction in this crowded landscape.
The move to support biometric authentication is a key differentiator. Apple’s Touch ID and Face ID technologies are widely regarded as secure and convenient methods for verifying transactions. By leveraging these technologies, Apple Pay can offer Indian consumers a more secure and user-friendly payment experience compared to methods relying on SMS-based one-time passwords.
While the timeline for the launch remains fluid, the ongoing discussions between Apple and key stakeholders suggest that Apple Pay is on track to become available in India around mid-. The launch will be closely watched by industry observers and consumers alike, as it represents a significant development in the evolution of digital payments in India.
