Apple Pay Set to Launch in India With Axis Bank
- Apple Pay is set to launch in India, bringing the tech giant's tap-to-pay service to the world's most populous smartphone market with Axis Bank serving as the initial...
- Axis Bank will be the exclusive launch partner for the initial release, according to sources familiar with the matter cited by TechCrunch and Reuters.
- Unlike India's ubiquitous Unified Payments Interface, which allows instant bank-to-bank transfers via QR code scanning without reliance on plastic cards, Apple Pay operates on a card-based architecture.
Apple Pay is set to launch in India, bringing the tech giant’s tap-to-pay service to the world’s most populous smartphone market with Axis Bank serving as the initial banking partner, according to reporting by TechCrunch and Reuters. The rollout, slated to begin next month, represents Apple's entry into a digital payments market dominated by the state-backed Unified Payments Interface, though initial adoption will be restricted to Axis Bank credit cards on the Visa and Mastercard networks.
Axis Bank Secured as Launch Partner Amid Ongoing Lender Negotiations
Axis Bank will be the exclusive launch partner for the initial release, according to sources familiar with the matter cited by TechCrunch and Reuters. Axis Bank held 16.26 million active credit cards as of July, placing it behind larger rivals such as HDFC Bank, SBI Cards, and ICICI Bank in total card volume. Apple has held parallel discussions with HDFC Bank and ICICI Bank, but commercial negotiations with those lenders remain unfinalized, according to TechCrunch. Sources told TechCrunch and Reuters that commercial terms have emerged as a sticking point during negotiations. Apple is seeking a fee of approximately 20 basis points on transactions, which sources noted would take a significant portion of the roughly 40 to 50 basis points of margin available in the payments layer. As a result, HDFC Bank, ICICI Bank, and SBI Card are not expected to support the platform at launch.
Card-Based Architecture Separates Apple Pay from UPI Dominance
Unlike India’s ubiquitous Unified Payments Interface, which allows instant bank-to-bank transfers via QR code scanning without reliance on plastic cards, Apple Pay operates on a card-based architecture. Users must add eligible credit cards to the Apple Wallet app, where details are tokenized and stored securely on the device. Because Apple Pay requires individual issuers and payment infrastructure providers to integrate directly with the service, a broad rollout remains complex.
Technical Limitations and Biometric Authentication Rules
Acceptance during the initial rollout will be restricted to merchants and payment terminals specifically enabled for Apple Pay, according to TechCrunch. Because compatibility depends on terminal-level support from independent payment providers and acquiring banks, transactions may work at one terminal while failing at another, leading to uneven acceptance across retailers. Authentication relies on Face ID or Touch ID rather than a PIN or one-time password for each transaction.
Economic Outlook and iPhone Market Growth in India
While Apple Pay will initially address a smaller card payments market compared to UPI, the service targets a growing base of affluent iPhone users more likely to hold premium credit cards. Counterpoint Research data cited by TechCrunch indicates that Apple accounted for 28 percent of India’s smartphone market by value last year, up from 23 percent the prior year. The Business Standard reported last month that India accounts for about a quarter of global iPhone production, with that share projected to rise to between 30 and 35 percent over the next five years.