Apple Pay Set to Launch in India with Axis Bank Support

Apple Pay is anticipated to make its debut in India next month, partnering initially with Axis Bank. This rollout comes after a prolonged absence in a market predominantly overseen by the Unified Payments Interface (UPI). The initial phase of the service will focus on enabling credit card transactions with Axis Bank’s Visa and Mastercard offerings, while other prominent banks including HDFC Bank and ICICI Bank are still negotiating their participation.

The payment mechanism will primarily facilitate card-based tap-and-pay transactions using Face ID and Touch ID. In contrast to the widely adopted UPI, which enables instantaneous bank-to-bank transfers, Apple Pay relies on card networks for its functionality. This card-centric approach necessitates a comprehensive integration process involving various payment infrastructure providers, making its broader implementation more complicated.

According to sources familiar with the situation, Apple is seeking a fee of approximately 20 basis points on transactions. This is viewed as a considerable request given that the typical margin in the payments layer is around 40 to 50 basis points. As a result, several Indian banking institutions, including HDFC Bank and ICICI Bank, are currently unwilling to support Apple Pay at launch, pending further discussions on the commercial terms.

At launch, eligible customers of Axis Bank will have the ability to add their credit cards to Apple’s Wallet app, which will allow for both online payments and contactless payments at approved terminals. However, acceptance of the service may vary. Transactions approved at certain terminals might not go through at others that lack compatibility, reflecting the initial limited scope of the rollout.

Apple Pay is entering a significantly different payments landscape in India compared to other nations where card usage is more prevalent. UPI currently dominates the digital payments ecosystem in India, with users accustomed to scanning QR codes for direct bank transfers. Despite this, Apple Pay could appeal to India’s budding demographic of iPhone users, who are generally more affluent and may utilise premium credit cards. This customer base could prove substantial for banks, even though UPI remains overwhelmingly popular.

This launch represents a notable expansion for Apple in India, coinciding with an overall increase in iPhone sales and local manufacturing. Recent reports suggest that Apple captured 28% of India’s smartphone market by value in 2025, increasing from 23% the previous year. Furthermore, the country accounted for approximately 25% of global iPhone production, a figure projected to rise in the coming years. The introduction of Apple Pay could serve as an additional revenue stream, capitalising on the expanding iPhone user base in India.