Apple Pay launches in India with Axis Bank, competing with UPI-based services

Apple has launched Apple Pay in India with Axis Bank as the initial banking partner, allowing customers to make contactless card payments via iPhone and Apple Watch. The service launches with limited merchant acceptance and represents Apple's entry into a payments market dominated by UPI, with plans to expand to additional banks over time.

Quick Facts

Apple Pay launched in India
Axis Bank customers can add Visa and Mastercard credit cards to Apple Wallet
Contactless tap-to-pay transactions enabled at supported terminals
Online purchases supported via Apple Pay
Face ID and Touch ID authentication used for payments

Apple has officially launched Apple Pay in India, partnering with Axis Bank to enable card-based digital payments on iPhones and Apple Watches. The service allows eligible Axis Bank customers to add Visa and Mastercard credit cards to Apple Wallet and use Face ID or Touch ID for contactless tap-to-pay transactions at supported merchants, as well as for online purchases. The launch represents Apple's entry into India's digital payments market after years of operating on the sidelines of a payments ecosystem dominated by the Unified Payments Interface (UPI).

The initial rollout is limited in scope. Only Axis Bank cardholders can participate at launch, with acceptance restricted to merchants and payment terminals enabled for the service. Negotiations with larger banks including HDFC Bank, ICICI Bank, and SBI Card over commercial terms are ongoing; these banks are not expected to support Apple Pay at launch. Apple is seeking approximately 20 basis points per transaction, which represents a significant portion of the 40–50 basis points margin typical in India's payments layer. The uneven merchant acceptance during initial rollout means some supported cardholders may experience inconsistent payment terminal compatibility.

Apple Pay operates separately from UPI, India's state-backed instant payment system that processes the majority of the country's digital transactions. UPI handled 24.51 billion transactions worth ₹29.82 lakh crore in August alone, accounting for 84 percent of digital payment volume. Apple's service is positioned as complementary to UPI, targeting affluent iPhone users who hold premium credit cards and value the rewards and biometric authentication benefits. The Reserve Bank of India's 2025 rule change permitting biometric authentication for card payments provided the regulatory framework necessary for Apple Pay's launch.

The move is part of Apple's broader expansion in India, where it has been increasing iPhone manufacturing and retail presence. Apple accounted for 28 percent of India's smartphone market by value in 2025, up from 23 percent the previous year. India currently accounts for approximately 25 percent of global iPhone production, with government officials projecting this share could rise to 30–35 percent within five years. Apple currently operates six official retail stores in India and has expanded authorized retailer partnerships. Industry analysts note that NFC-enabled payment terminal adoption and credit card usage are growing at double-digit rates, and India's credit card base has nearly doubled since the COVID-19 pandemic to exceed 120 million cards, creating the merchant infrastructure necessary for the service launch.

Topics

Technology Business

#digital payments #contactless payments #NFC #merchant terminals #credit cards #Apple Pay #UPI #Axis Bank #Apple Wallet #biometric authentication

Entities

Why This Matters

Apple Pay's India entry introduces a competing card-based payment layer targeting affluent credit card holders in a market where UPI processed 84% of digital transactions (24.51 billion in August alone). The service requires regulatory approval (implemented via RBI's 2025 biometric authentication framework), depends on merchant terminal NFC adoption (growing double-digit annually), and hinges on negotiations with larger banks over transaction fees (Apple seeks ~20 bps against typical 40–50 bps margins). Success metrics include credit card user growth (base exceeded 120 million post-pandemic), merchant acceptance rates, and Apple's expanding India footprint (28% smartphone market share by value, 25% of global iPhone production). Outcome will affect payment ecosystem competition, merchant technology investment decisions, and Apple's services revenue contribution.

Timeline & Sources

Jan 1, 2025

Wire

Reserve Bank of India introduces biometric authentication framework for digital card payments

Jan 1, 2025

Wire

Apple accounts for 23% of India's smartphone market by value

Sep 29, 2026

Wire

Apple Pay officially launches in India with Axis Bank partnership

Sep 30, 2026

Wire

Launch details reported; Apple accounts for 28% of India's smartphone market by value