Apple Pay could finally arrive in India by September-end or October. The service is in development as the tech giant is planning to enter the digital payment market of India. However, there’s a catch. According to reports, Indian users may not get UPI payments as part of the initial rollout, instead, Apple is trying to make a partnership with the major credit card companies of the country, Visa and Mastercard, to debut Apple Pay in the country.
The primary problem behind the UPI transaction is that Apple needs approval from the National Payments Corporation of India to launch the UPI service, along with a banking partner to support the transactions. Apple is reportedly looking for a 15 to 20 basis point fee per transaction, while banks aren’t ready to go above 10 basis points per transaction. This fee will come from banks' interchange revenue and won’t be charged to customers or merchants.
Thus, the Cupertino-based company is initially going for a credit card-based approach. Once launched, users can add supported cards to Apple Wallet and then make contactless payments using their iPhones.
Apple Pay could still appeal to people who often use credit cards. Paying with an iPhone or Apple Watch can be simple at shops that support contactless payments. It may also give Apple users a more direct way to manage their cards.
The bigger challenge is getting people to change their habits. UPI does not need a credit card and works across many banks and apps. It is also widely accepted by small shops and large stores. Apple may slowly add more payment options after the launch. However, without UPI, Apple Pay could remain a service aimed mainly at card users rather than becoming a major part of everyday payments.
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Apple Pay’s arrival is still a big step for the company in India. Yet its success may depend on how quickly Apple expands its payment options. For now, UPI remains the stronger choice for most everyday transactions.