Apple started rolling out Apple Pay in India on Tuesday, as TechCrunch was first to report. 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 also be restricted to retailers and fee terminals which have been enabled for the service.
Apple stated the service could be accepted by “tens of millions of retailers” throughout India, together with Blinkit, Croma, Ixigo, Reliance manufacturers, Tata 1mg, and Zomato. The corporate has labored with fee service suppliers together with Cashfree, JusPay, Mswipe, Paytm, PayU, Pine Labs, Razorpay, and Worldline to allow Apple Pay acceptance.
In contrast to India’s ubiquitous Unified Funds Interface (UPI) system, which lets customers make instantaneous bank-to-bank funds with out counting on playing cards, Apple Pay is card-based and requires particular person issuers and fee infrastructure suppliers to combine with the service. This makes a broad rollout extra advanced. Apple’s business phrases have additionally emerged as a sticking level with a few of India’s largest banks, the individuals stated.
Apple is searching for a payment of about 20 foundation factors (0.2%) on transactions, based on the individuals, a major chew out of the roughly 40 to 50 foundation factors (0.4% to 0.5%) of margin within the funds layer. The payment construction is broadly in line with Apple Pay’s business mannequin in different markets, the individuals stated. HDFC Financial institution, ICICI Financial institution, and SBI Card usually are not 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 getting 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 totally different from the U.S. and different card-heavy economies. India’s digital funds increase has been pushed largely by UPI, the state-backed system that lets customers transfer cash instantly between financial institution accounts.
UPI handles the bulk of digital payments in India, the place scanning a QR code to pay instantly from a checking account has turn out to be commonplace. Apple Pay, in contrast, initially addresses a a lot smaller card funds market.
However, Apple Pay may attraction to India’s rising base of iPhone customers, who are usually extra prosperous and are extra seemingly to make use of premium bank cards. These prospects may make the service exhausting for banks to disregard, regardless of UPI’s dominance.
Even when Apple Pay stays a distinct segment service, the economics may nonetheless make India significant for Apple. The transaction payment the iPhone maker would cost would give it one other solution to monetize its rising base of iPhone customers within the nation, the individuals stated.
At launch, eligible Axis Financial institution prospects 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 stated.
An Apple Pay transaction may 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 stated. That might make acceptance uneven throughout 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 12 months earlier, per an earlier report by Counterpoint Analysis.
India already accounts for about a quarter of global iPhone production, and that share could rise to 30% to 35% over the following 5 years, Indian English every day Enterprise Commonplace reported final month, citing an Indian authorities official.
Replace: This story, initially printed Tuesday morning, has been up to date to mirror that the launch is now underway.
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