Apple has officially launched Apple Pay in India, marking its entry into the country’s payment landscape as reported by TechCrunch. Collaborating with Axis Bank, the third-largest private bank in India, this introduces Apple’s payment system to the world’s most populous nation after extensive delays. The Indian market is currently dominated by the government-supported United Payments Interface (UPI).
The initial launch is somewhat limited, as Apple Pay will only support eligible Axis Bank cards on the Visa and Mastercard networks, excluding the indigenous RuPay system. Users will also be able to transact only with merchants and payment terminals that have been activated for this service.
In contrast to the widely used UPI system that enables instantaneous bank transfers without the need for cards, Apple Pay is reliant on card transactions and demands that payment providers and individual banks integrate with their platform, complicating its widespread adoption. Additionally, Apple’s proposed commercial terms have caused delays with discussions involving several significant banks in India.
According to sources, Apple is requesting a transaction fee of about 20 basis points (0.2%), which is noteworthy considering that the typical margin in the payment sector is around 40 to 50 basis points (0.4% to 0.5%). This fee structure aligns with Apple Pay’s business model seen in other global markets. Major Indian banks like HDFC Bank, ICICI Bank, and SBI Card will not support Apple Pay upon its launch due to ongoing negotiations regarding the terms.
Requests for comments from Apple, Axis Bank, and the other banks regarding this launch went unanswered. Earlier reports indicated that Apple was gearing up to launch Apple Pay in India around October, starting with Axis Bank credit cards.
Apple Pay is entering a payment ecosystem that vastly differs from that of the U.S. and other markets where card usage is prevalent. The digital payments surge in India has been largely propelled by UPI, allowing users to transfer funds directly between bank accounts.
While UPI processes most digital transactions in India, where paying via QR codes directly from bank accounts is ubiquitous, Apple Pay targets a smaller niche within the card payment market.
Nonetheless, Apple Pay may attract India’s expanding group of iPhone users, who generally possess higher incomes and prefer premium credit cards. This demographic could compel banks to consider the service seriously, even with UPI’s strong presence.
Even if Apple Pay only secures a small niche, it might still provide significant economic benefits for Apple in India. The transaction fees would serve as another revenue channel from the growing population of iPhone users in the region.
At the outset, eligible Axis Bank customers can link their credit cards to Apple’s Wallet app, enabling them to utilize Apple Pay for online transactions and contactless payments at participating terminals.
However, acceptance may be inconsistent during the early phases, as a transaction could be accepted at one terminal enabled by an independent payment provider while failing at another terminal if the acquiring bank has not integrated the service.
This launch is a further step in Apple’s strategy to expand its presence in India, where it is already increasing sales of iPhones, promoting local manufacturing, and broadening its retail network. According to a previous report, Apple captured 28% of India’s smartphone market by value in 2025, up from 23% the previous year.
India currently represents approximately 25% of global iPhone production, potentially growing to 30% to 35% in the next five years, as mentioned by a government official.
Update: This article has been updated to confirm that the launch is now live.
