Apple Pay to launch in India next month with Axis Bank credit cards

Apple is reportedly set to launch its Apple Pay service in India next month, starting with support for Axis Bank credit cards. The move would bring the payment service to one of the few major economies where it has so far remained unavailable. Apple Pay's entry has been delayed in the Indian market due to bank rates and government hurdles, but it now looks like the tech giant has managed to iron out long-pending issues. Reuters cites people familiar with the matter to report that Apple's India rollout will begin with just one major banking partner rather than a broad multi-bank launch, with the company working to expand support among the country's lenders over time. Axis Bank, which the report notes is India's fourth-largest credit card issuer, has been identified as that initial partner.Apple Pay Faces Roadblock Due To Pricing Hurdles Ahead Of India LaunchWhy India matters for Apple PayThe launch would mark a significant expansion for Apple Pay into the world's most populous country, a market Apple has been steadily building out its retail and services presence in over recent years. India's absence from Apple Pay's global footprint has stood out given the country's rapidly growing digital payments ecosystem, dominated domestically by UPI-based systems, making Apple's entry a notable test of how the service fits alongside India's existing payment rails.What is Apple Pay?For all those unaware, Apple Pay is Apple's contactless mobile payment and digital wallet service, allowing users to make payments in stores, apps, and online using an iPhone, Apple Watch, iPad, or Mac, without needing a physical card. It works by securely storing tokenized versions of a user's debit and credit cards on the device, using Face ID, Touch ID, or a passcode for authentication instead of transmitting actual card numbers during a transaction. Beyond retail payments, Apple Pay also supports peer-to-peer transfers, transit payments in select cities, and integration with loyalty cards and boarding passes. As of now, Apple Pay is available in more than 90 countries and regions worldwide, spanning North America, Europe, Asia-Pacific, and parts of the Middle East and Latin America, though India has remained a notable gap in that footprint until now.

MUMBAI: Apple is poised to launch Apple Pay in India next month with Axis Bank's credit cards, three sources familiar with the matter said, as it works to expand support among the country's lenders.The launch, starting with a single major banking partner, would help the US company offer its payment service in the world's most populous country, one of the few major economies where it is not available.Also Read: Apple Pay wants a slice of India, but faces a big pricing challengeMumbai-based Axis Bank is the fourth-largest credit card issuer in India.Apple Pay has also been in discussions with Axis Bank's larger private sector rivals HDFC Bank and ICICI Bank but they are yet to agree commercial terms, two of the sources said.All three sources spoke on condition of anonymity as the talks are private. Apple and HDFC did not respond to requests for comment from Reuters. ICICI and Axis said no comment when contacted by Reuters.Also Read: Apple iPhone 18 Pro, AirPods 5, Apple Watch Series 12 sales start in India: Check prices, features and availabilityApple Pay allows iPhone users to make tap-and-pay purchases using tokenised card details stored in their devices, without opening a separate payments app.Apple plans to add lenders over time through direct, bank-by-bank deals, mirroring phased rollouts in other markets, said one of the three sources.Apple's share of India's smartphone market has doubled to 8% since 2022, according to Counterpoint Research, establishing it as one of its largest markets.Apple Pay will join a crowded digital payments market.Payments via the home-grown Unified Payments Interface, which allows transfers via QR codes, phone numbers and tap and pay, dominate the market, making up 84% of India's digital payments volume.Last year, the Reserve Bank of India allowed biometric authentication for card payments, enabling Apple's payment service to work with Indian bank cards using Face ID and Touch ID.Axis Bank, with 16.26 million active credit cards in July, trails HDFC Bank, SBI Cards and ICICI Bank in terms of issuance, according to RBI data.