Apple Pay may launch in India next month with Axis Bank credit cards: Report

The reported move would give iPhone users in India access to Apple’s tap-and-pay service using supported bank cards, without having to open a separate payments application.

Apple Pay uses tokenised card details stored on the device and allows users to authenticate transactions through features such as Face ID and Touch ID.

Apple Pay in India: What we know

According to Reuters, Apple is currently working with Axis Bank as its first major banking partner for the India launch. The company is also in discussions with HDFC Bank and ICICI Bank, although commercial terms with the two lenders have not yet been finalised, the report said.

The discussions are private and the three sources cited by Reuters spoke on condition of anonymity.

Apple and HDFC Bank did not respond to Reuters’ requests for comment, while Axis Bank and ICICI Bank declined to comment.

Apple is expected to add more lenders over time through separate agreements with individual banks, Reuters reported.

Why the India launch matters

Apple Pay would enter a payments market where UPI has a dominant presence. UPI accounted for 84% of India’s digital payments volume, according to data cited by Reuters.

The service’s reported India entry also comes as Apple’s footprint in the country’s smartphone market has expanded. Its market share has doubled to 8% since 2022, according to Counterpoint Research data cited by Reuters.

A regulatory change has also helped facilitate card-based payments through biometric authentication. The Reserve Bank of India (RBI) last year allowed biometric authentication for card transactions, enabling services such as Apple Pay to use Face ID and Touch ID for authentication.

Axis Bank had 16.26 million active credit cards in July, according to RBI data cited by Reuters. It ranked fourth among credit card issuers, behind HDFC Bank, SBI Cards and ICICI Bank.

The reported launch date and the final set of participating banks could still change, as Apple and lenders continue to work through the arrangements.