Apple started rolling out Apple Pay in India on Tuesday, as TechCrunch first reported. Its first banking companion is Axis Financial institution, the nation’s third-largest private-sector lender. The transfer brings the corporate’s funds service to the world’s most populous nation after years of delays in a market dominated by the state-backed United Funds Interface (UPI).
The preliminary rollout is restricted. Apple Pay helps eligible Axis Financial institution playing cards on Visa and Mastercard, however not India’s homegrown RuPay community. Acceptance may even be restricted to retailers and cost terminals which have been enabled for the service.
In contrast to India’s ubiquitous Unified Funds Interface (UPI) system, which lets customers make prompt bank-to-bank funds with out counting on playing cards, Apple Pay is card-based and requires particular person issuers and cost infrastructure suppliers to combine with the service. This makes a broad rollout extra complicated. Apple’s business phrases have additionally emerged as a sticking level with a few of India’s largest banks, the individuals mentioned.
Apple is in search of a charge of about 20 foundation factors (0.2%) on transactions, in accordance with the individuals, a big chunk out of the roughly 40 to 50 foundation factors (0.4% to 0.5%) of margin within the funds layer. The charge construction is broadly in line with Apple Pay’s business mannequin in different markets, the individuals mentioned. HDFC Financial institution, ICICI Financial institution, and SBI Card will not be supporting Apple Pay at launch as negotiations over business phrases proceed, one of many individuals instructed TechCrunch.
Apple, Axis Financial institution, HDFC Financial institution, ICICI Financial institution, and SBI Card didn’t reply to requests for touch upon the launch. Earlier this month, Reuters reported that Apple was making ready to launch Apple Pay in India in October, beginning with Axis Financial institution bank cards.
Apple Pay has entered a funds market that appears markedly completely different from the U.S. and different card-heavy economies. India’s digital funds growth has been pushed largely by UPI, the state-backed system that lets customers transfer cash immediately between financial institution accounts.
UPI handles the bulk of digital payments in India, the place scanning a QR code to pay immediately from a checking account has turn into commonplace. Apple Pay, against this, initially addresses a a lot smaller card funds market.
However, Apple Pay might attraction to India’s rising base of iPhone customers, who are usually extra prosperous and are extra doubtless to make use of premium bank cards. These clients might make the service arduous for banks to disregard, regardless of UPI’s dominance.
Even when Apple Pay stays a distinct segment service, the economics might nonetheless make India significant for Apple. The transaction charge the iPhone maker would cost would give it one other strategy to monetize its rising base of iPhone customers within the nation, the individuals mentioned.
At launch, eligible Axis Financial institution clients can add their bank cards to Apple’s Pockets app and use Apple Pay for on-line purchases in addition to contactless funds at supported terminals, the individuals mentioned.
An Apple Pay transaction might work at a terminal operated by an impartial funds supplier that has enabled the service however fail at one other terminal whose buying financial institution has not, one of many individuals mentioned. That might make acceptance uneven in the course of the preliminary rollout, even for patrons with supported playing cards.
The launch provides one other piece to Apple’s rising enterprise in India, the place it has been increasing iPhone gross sales, native manufacturing, and its retail footprint. Apple accounted for 28% of India’s smartphone market by worth in 2025, up from 23% a yr earlier, per an earlier report by Counterpoint Analysis.
India already accounts for a couple of quarter of worldwide iPhone manufacturing, and that share could rise to 30% to 35% over the following 5 years, Indian English each day Enterprise Commonplace reported final month, citing an Indian authorities official.
Replace: This story, initially printed Tuesday morning, has been up to date to replicate that the launch is now underway.
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