Apple is preparing to bring its Apple Pay service to India, with Axis Bank expected to be its first banking partner for the rollout, according to people familiar with the matter. The service could launch in India next month with support for Axis Bank credit cards.
The move would bring Apple’s payment service into a market where digital transactions are heavily dominated by the Unified Payments Interface (UPI). Apple is also holding discussions with HDFC Bank and ICICI Bank to add their cards to Apple Pay, the sources said.
Talks with HDFC Bank and ICICI Bank did not result in final commercial agreements, according to two sources. Apple and the three banks did not comment to Reuters on the discussions.
Apple Pay is designed to let iPhone users make contactless payments using tokenised versions of their bank card details. The card information is stored on the device, allowing users to pay without opening another payment app. The company is expected to add more banks through separate agreements. This would allow Apple to expand card support gradually after the initial rollout.
The India entry also comes as Apple gains ground in the country’s smartphone market. Counterpoint Research data cited by Reuters shows Apple’s market share reached 8%, twice its level in 2022. India is now among Apple’s largest smartphone markets.
Apple Pay will enter a payments ecosystem where UPI accounts for a major share of digital transactions. According to Reuters, UPI represented 84% of India’s digital payment volume.
The National Payments Corporation of India also introduced a tap-and-pay option using near-field communication technology. This gives smartphone users another way to make contactless payments.
Changes in payment rules have also opened space for Apple Pay. The Reserve Bank of India allowed biometric authentication for card payments last year. This supports card payments through features such as Face ID and Touch ID.
Axis Bank had about 16.26 million active credit cards in July, RBI data showed. It was the fourth-largest card issuer in India, after HDFC Bank, SBI Cards and ICICI Bank. An Apple Pay launch would give the company a foothold in India’s contactless card payment segment. Its expansion will depend on adding more banks and card networks to the service.
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