Apple Pay has finally arrived in India, making its debut on September 30 with Axis Bank as its first banking partner. The service initially supports eligible Axis Bank Visa and Mastercard credit cards, enabling users to make contactless payments at compatible terminals, as well as transactions within apps and on websites using supported Apple devices.
The decision to launch with Axis Bank, rather than larger credit card issuers such as HDFC Bank, ICICI Bank, or SBI Card, highlights a combination of commercial negotiations and technical preparedness. While Axis Bank is not India's largest credit card provider, its readiness allowed for an earlier rollout.
Why Axis Bank Led the Launch
Industry reports indicate that commercial terms played a significant role in the staggered launch. Apple was reportedly seeking approximately 20 basis points per transaction, while major issuers like HDFC Bank, ICICI Bank, and SBI Card were willing to offer around 15 basis points. Negotiations with these larger banks are ongoing, suggesting that a consensus on transaction fees was a key hurdle.
However, financial terms were not the sole factor. Apple Pay relies on NFC-based contactless payment technology, necessitating robust integration with banks, card networks, and existing payment infrastructure. Jennifer Bailey of Apple noted that the timing for each issuer depends on various factors, including their technical readiness, card portfolio, and the specific work required to implement Apple Pay for their customers.
Apple's Infrastructure and Future Expansion
Apple Pay is compatible with iPhone XR and later models running iOS 18 or newer, Apple Watch Series 6 and later running watchOS 11 or newer (paired with an iPhone XR or later), and compatible iPad models. Mac support is anticipated soon.
To facilitate its entry into the Indian market, Apple collaborated with several prominent Indian payment service providers and point-of-sale companies. These partners include Cashfree, JusPay, Mswipe, Paytm, PayU, Pine Labs, Razorpay, and Worldline. These strategic alliances provide Apple with access to an established merchant infrastructure, circumventing the need for individual businesses to build separate integrations.
Apple's market share in India's smartphone segment has doubled to 8% since 2022, positioning it as one of its largest markets. The company has confirmed that Apple Pay functions anywhere NFC transactions are accepted, thanks to its partnerships with these payment providers across India's merchant networks.
This initial partnership with Axis Bank appears to be the first step in a broader rollout. Apple plans to expand Apple Pay to additional banks as they achieve the necessary technical readiness and portfolio integration.
India's Unique Payment Landscape
The introduction of Apple Pay into India's digital payments ecosystem also faces the unique challenge of the country's UPI (Unified Payments Interface)-heavy market. UPI accounts for approximately 84% of digital payment volume in India, while Apple Pay primarily operates as a card-based service. This dynamic adds another layer of consideration for its widespread adoption and how it will compete or integrate within the existing payment habits of Indian consumers.