Apple Reportedly Planning India Launch of Apple Pay With Axis Bank

Apple is poised to launch its Apple Pay service in India as soon as next month, starting with a partnership with Axis Bank for its credit card holders, according to three sources familiar with the matter cited by Reuters. The move would mark Apple's entry into one of the few major global economies where its payment platform is not yet available.

Initial Partnership and Broader Plans

The initial rollout will reportedly focus on Axis Bank, which is India's fourth-largest credit card issuer with 16.26 million active cards as of July, according to Reserve Bank of India (RBI) data. The sources, who spoke on condition of anonymity, said the U.S. tech giant plans to add more lenders over time through direct, bank-by-bank agreements, mirroring its phased rollout strategy in other countries.

Discussions have also been held with larger private sector rivals HDFC Bank and ICICI Bank, but commercial terms have not yet been agreed upon, two of the sources said. When contacted by Reuters, Axis Bank and ICICI Bank declined to comment, while Apple and HDFC Bank did not respond to requests for comment.

Navigating a Competitive Market

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Apple Pay's entry comes as the company's footprint in India grows significantly. According to Counterpoint Research, Apple's share of the Indian smartphone market has doubled to 8% since 2022. However, the service will face a highly competitive digital payments landscape.

The market is overwhelmingly dominated by the homegrown Unified Payments Interface (UPI), a real-time payment system that accounts for 84% of India's digital payments volume. Apple Pay, which allows users to make tap-and-pay purchases with tokenized card details, will need to carve out a niche among established players.

Regulatory Framework

A key enabler for this launch was a regulatory update from the RBI last year. The central bank permitted the use of biometric authentication for card-based payments, which allows Apple's Face ID and Touch ID security features to be used with Indian bank cards, clearing a path for the service's functionality in the country.