Apple Pay could finally be headed to India, with the service reportedly expected to launch by September-end or October. However, there may be a major limitation for Indian users at launch: UPI payments may not be supported initially.
According to a Business Standard report, Apple is currently in talks with major credit card issuers in India as it prepares to introduce its payment service in the country. The initial rollout is expected to focus on credit cards operating on networks such as Visa and Mastercard. Here are three key points to know.
1. APPLE PAY MAY LAUNCH WITHOUT UPI
For Indian consumers, the absence of UPI could be the biggest drawback. Apple Pay is reportedly unlikely to support UPI transactions when it first launches.
Adding UPI functionality would require approval from the National Payments Corporation of India (NPCI), as well as a banking partner capable of sponsoring the transactions. Apple therefore appears to be opting for a card-focused launch initially.
As a result, Apple Pay is unlikely to immediately become an alternative to apps such as Google Pay or PhonePe for everyday UPI transactions.
2. CREDIT CARDS COULD BE THE MAIN FOCUS
The initial Apple Pay experience in India is expected to centre around credit cards. Users could potentially add compatible cards to Apple Wallet and use their iPhones to make contactless payments at NFC-enabled point-of-sale terminals.
The process would be similar to Apple Pay’s operation in other countries. Instead of physically using a card, users can authenticate the transaction on their iPhone and tap the device against a compatible payment terminal.
Apple has reportedly been negotiating with some of India’s largest credit card issuers regarding the financial terms of these transactions. A key part of those discussions is the interchange fee, which is exchanged between banks when a card transaction is processed.
3. APPLE AND BANKS ARE NEGOTIATING THE FEE
The interchange fee could become one of the major factors influencing Apple Pay’s India launch.
According to the report, Apple has reportedly been seeking a share of around 15-20 basis points from each credit card transaction. Some major card issuers, however, are said to be seeking a lower rate of approximately 10 basis points.
For context, one basis point equals 0.01%. Consumers would not directly pay this fee. Instead, it would come from the revenue banks generate through card transactions.
Apple has not officially confirmed either the reported launch timeline or the specific details of its India rollout. However, if negotiations progress, iPhone users in India could soon have an official option to store supported credit cards in Apple Wallet and make contactless payments — more than a decade after Apple Pay was first introduced globally.
