Winning Bizness Desk
Mumbai.Apple is preparing to launch its digital payment service Apple Pay in India, a move that could change how iPhone users make everyday transactions. The company has begun discussions with major global card networks such as Visa and Mastercard to enable card-based payments in the country. According to industry reports, Apple is in the process of securing regulatory approvals and plans to roll out the service in phases, with a broader launch targeted by 2026. If cleared, this would mark Apple Pay’s first full-scale entry into India’s fast-growing digital payments market.
Talks underway with card networks and banks
Apple has initiated formal conversations with Visa and Mastercard, which are expected to play a central role in the initial rollout. People familiar with the development say the company is also engaging with Indian banks to work out commercial agreements and transaction fee structures. Apple typically charges a small fee per transaction, paid by banks, and aligning this model with Indian regulations and banking expectations is seen as one of the key challenges before launch.
No UPI support in initial phase
In the first phase, Apple Pay is unlikely to support UPI-based transactions. The company is not expected to apply for a third-party application provider license for UPI at the outset. Instead, the focus will remain firmly on contactless, card-based payments using NFC technology. Users will be able to store their debit or credit cards in the Apple Wallet and pay by simply tapping their iPhone or Apple Watch at compatible merchant terminals.
Key features expected at launch include
- Card-based contactless payments without physical cards
- Secure authentication using Face ID or Touch ID
- Payments through iPhone, Apple Watch and iPad
- Integration with Visa and Mastercard networks
Tap to pay brings speed and security
Apple Pay relies on near-field communication to enable tap-to-pay transactions, removing the need to swipe or insert a card. Each payment is authenticated biometrically, adding an extra layer of security. At present, Indian-issued cards cannot be added to Apple Wallet, making this launch particularly significant for local users. The service is already available in 89 countries, and Apple aims to bring the same experience to India while complying fully with local norms.
Regulatory hurdles and RBI compliance
India has strict rules around digital payments, especially on data localisation and card tokenisation. Apple is said to be in continuous discussions with regulators, including the Reserve Bank of India, to ensure full compliance. These talks are crucial, as regulatory clearance will determine the pace and scope of the rollout. Apple’s ability to meet these requirements will be closely watched by banks and competitors alike.
Competition and market strategy in India
Apple Pay will enter a crowded space dominated by Google Pay, PhonePe and Paytm. However, unlike these platforms, Apple Pay will work only on Apple devices.
Factors that could shape its adoption include
- Growing iPhone market share among premium users
- Limited device ecosystem compared to rivals
- Absence of UPI in the early stages
- Apple’s long-term focus on India after China
Apple views India as a strategic growth market, and the launch of Apple Pay fits into its broader expansion plans. While challenges remain, the service could find a strong niche among high-end users once it goes live.
