After more than a decade of false starts, regulatory roadblocks, and “we’re working on it” promises, Apple Pay is finally coming to India.
Bloomberg reported this morning that Apple is in active discussions with three of India’s largest private banks ICICI Bank, HDFC Bank, and Axis Bank along with global card networks Visa and Mastercard. The target? Launch Apple Pay in India by mid-2026.
If you’re thinking “wait, hasn’t Apple Pay been around forever?” yes. Apple Pay launched in the United States in September 2014. It’s currently available in 89 markets worldwide. But India, despite being the world’s most populous country with over 750 million smartphone users and one of the fastest-growing digital payment ecosystems on the planet, has remained conspicuously absent from that list.
Until now.
This isn’t just another market expansion announcement. This represents Apple cracking a market it’s been trying to enter since at least 2017, when Eddy Cue publicly stated “We absolutely want to bring Apple Pay to the market [in India].” Seven years of negotiations later, we’re finally getting somewhere.
Let me explain why this took so long, what finally changed to make it possible, why this matters enormously for both Apple and Indian consumers, and what happens next.
The 12-Year Wait: Why India Was So Hard to Crack
Apple Pay isn’t late to India because Apple forgot about the country. It’s late because India’s digital payments ecosystem is fundamentally different from anywhere else Apple operates, and the regulatory environment has been uniquely challenging.
The UPI Problem (Which Wasn’t Really a Problem)
India’s digital payment landscape is dominated by UPI Unified Payments Interface a government-backed real-time payment system that has absolutely transformed how Indians transact.
The numbers are staggering:
- UPI processed over 16 billion transactions in January 2026 alone
- That’s more than 500 million transactions per day
- Transaction value exceeded ₹23 trillion ($275+ billion) monthly
- Over 50% of all digital payments in India happen via UPI
UPI lets you instantly transfer money between bank accounts using just a phone number or UPI ID. No credit cards required. No merchant fees (or minimal ones). No proprietary infrastructure owned by foreign tech companies.
Apps like Google Pay, PhonePe (owned by Walmart), Paytm, and even WhatsApp have built their payment services on top of UPI. It’s free for consumers, near-instant, and works everywhere from street vendors to major retailers.
Apple Pay, by contrast, is built around tokenized credit and debit card transactions. In most markets, that’s fine card payments dominate. In India? Cards are secondary. UPI is king.
For Apple Pay to succeed in India, it had to figure out how to integrate with UPI. That’s not a simple technical challenge it’s navigating a government-controlled payment infrastructure with strict regulatory requirements, data localization mandates, and a fundamentally different business model than Apple uses elsewhere.
The Authentication Barrier
Until late 2025, India’s digital payment authentication relied almost exclusively on one-time passwords (OTPs) sent via SMS. You initiate a transaction, you get a text with a code, you enter the code, payment goes through.
Apple Pay doesn’t work that way. Apple Pay uses biometric authentication Face ID or Touch ID. You hold your phone near a payment terminal, it scans your face or fingerprint, payment approved. No codes. No texts. No friction.
For years, Indian regulations didn’t support biometric authentication for payments. Apple Pay’s core technology simply wasn’t legally allowed.
That changed in late 2025 when the Reserve Bank of India (RBI) introduced new rules permitting biometric authentication including fingerprint and facial recognition for digital payments.
This single regulatory shift removed the biggest technical barrier to Apple Pay in India. Suddenly, the product Apple wanted to launch could actually work within Indian law.
The Fee Structure Battles
Apple takes a cut of every Apple Pay transaction typically around 0.15% from card issuers. That’s how Apple Pay makes money.
In India, that’s a problem. The margins on digital payments are already razor-thin. UPI transactions often charge zero merchant fees. Banks and payment networks have operated on volume with minimal margins.
Apple coming in and demanding a percentage of every transaction? That’s been a sticking point in negotiations for years.
According to today’s reports, Apple is “in discussions with card issuers over the fees that would be charged for accessing its payments infrastructure.” Translation: they’re still negotiating what Apple gets paid and who pays it.
This is likely why the “mid-2026” timeline is described as “fluid” the technology might be ready, but the business model negotiations are ongoing.
What Finally Changed: The Three Factors That Made This Possible
So why is this happening now, after 12 years? Three things converged:
1. Regulatory Green Light
The RBI’s late-2025 decision to allow biometric authentication was the game-changer. Without that, Apple Pay literally couldn’t function the way it’s designed to work.
This wasn’t Apple lobbying successfully. This was India modernizing its payment regulations to align with global standards, and Apple benefiting from that modernization.
2. Apple’s Growing India Presence
Apple has dramatically increased its commitment to India over the past few years:
Manufacturing: Apple recently surpassed $50 billion in cumulative iPhone exports from Indian assembly plants. India is now a major production hub, diversifying Apple away from China dependence.
Retail: Apple opened its sixth India store in Mumbai (Apple Borivali) just this week. The company is expanding physical retail aggressively.
Market Share: Apple recorded its highest-ever iPhone shipments in India in 2025, reaching 9-10% market share in a historically Android-dominated market.
Executive Attention: Tim Cook has repeatedly called India a priority market with “incredible growth.”
Apple isn’t treating India as an afterthought anymore. It’s a strategic pillar. Launching Apple Pay is part of that broader commitment.
3. Services Revenue Imperative
Apple’s services business which includes Apple Pay, iCloud, Apple Music, App Store commissions, and more generated over $96 billion in revenue in fiscal 2025. That’s more than many Fortune 500 companies’ entire revenues.
Services have higher profit margins than hardware and provide recurring revenue rather than one-time device sales. Apple desperately wants to grow services globally.
India, with 750+ million smartphone users, rapidly growing middle class, and exploding digital payment adoption, represents enormous untapped services revenue potential.
Apple Pay in India isn’t just about payment fees. It’s about ecosystem lock-in. Once you have your cards in Apple Wallet, you’re more invested in the Apple ecosystem. You’re more likely to buy an iPhone next time. You’re more likely to subscribe to other Apple services.
The services revenue opportunity justifies the years of negotiation and regulatory navigation.
The Rollout Plan: Cards First, UPI Later
According to multiple reports, Apple Pay’s India launch will happen in phases:
Phase 1: Card-Based Contactless Payments (Mid-2026)
The initial rollout will focus on credit and debit card payments using NFC (Near Field Communication) tap-to-pay technology.
How it works:
- Add your credit or debit card from ICICI, HDFC, or Axis Bank to Apple Wallet
- Hold your iPhone or Apple Watch near any contactless payment terminal
- Authenticate with Face ID or Touch ID
- Payment approved instantly
This works at any merchant that accepts contactless card payments which is increasingly common in Indian metros and tier-1 cities.
Phase 2: UPI Integration (Timeline TBD)
In later phases, Apple is expected to integrate UPI support. This is where things get strategically critical.
If Apple Pay supports UPI, it becomes relevant for everyday transactions paying the auto-rickshaw driver, splitting bills with friends, paying at street food stalls. These are contexts where credit cards don’t work but UPI dominates.
However, UPI integration requires separate regulatory approvals and compliance with National Payments Corporation of India (NPCI) guidelines. It’s more complex than card integration.
Some reports suggest Apple may not immediately apply for a third-party app license for UPI because the regulatory process is more complicated than enabling card payments. They’ll start with cards, prove the model works, then add UPI.
Why the Phased Approach Makes Sense
Starting with cards among India’s wealthiest consumers (those with iPhone ownership and premium bank cards) lets Apple:
- Test the technology in a controlled environment
- Work out operational issues with smaller transaction volumes
- Build relationships with partner banks
- Demonstrate value before tackling UPI’s regulatory complexity
It’s classic Apple: launch in premium segments first, expand to mass market later.
The Competition: Apple’s Walking Into a Crowded Market
Let’s be clear: Apple Pay is not arriving to an empty playing field. India’s digital payments market is brutally competitive.
The Current Leaders:
PhonePe 47% market share, 500+ million users, owned by Walmart. Processes over 7 billion UPI transactions monthly.
Google Pay 37% market share, deeply integrated into Android (which is 90%+ of India’s smartphone market).
Paytm Once dominant, still a major player despite regulatory challenges. Diversified into e-commerce, wealth management, and more.
Amazon Pay Integrated with Amazon’s massive e-commerce presence in India.
BHIM UPI Government’s own UPI app, positioned as the “official” option.
WhatsApp Pay Meta’s entry using WhatsApp’s enormous Indian user base.
These platforms are already established, have hundreds of millions of users, support UPI natively, and operate with minimal or zero fees.
Apple Pay’s advantages:
- Hardware Integration: Built into iPhone, iPad, Apple Watch, Mac seamless for Apple users
- Security: Biometric authentication, tokenization, no card numbers stored on device or Apple servers
- Privacy: Apple positions itself as privacy-first; doesn’t track or sell transaction data
- Premium Brand: Appeals to affluent consumers who value convenience and status
- Global Ecosystem: Works across 89 countries; useful for frequent travelers
Apple Pay’s disadvantages:
- Limited to Apple Devices: Only works on iPhone, Apple Watch, iPad, Mac excludes 90%+ of Indian smartphone users
- Premium Positioning: Hard to compete in a market where “free” is the expectation
- Late Arrival: Competitors have years of user habits, merchant relationships, and network effects
The Stock Market Reaction
Paytm parent company One97 Communications saw its stock drop 2.6% after the Apple Pay announcement. The market is pricing in increased competition.
But realistically, Apple Pay isn’t going to disrupt PhonePe or Google Pay’s dominance. What it will do is capture a disproportionate share of premium transactions among India’s iPhone users who tend to be wealthier, higher-spending consumers.
That’s enough to make Apple Pay profitable in India even without mass market penetration.
What This Means for Different Groups
For iPhone Users in India
This is a clear win. You’ll get:
- Seamless contactless payments without carrying physical cards
- Secure tokenized transactions (merchants never see your actual card number)
- Biometric authentication faster than entering PINs
- Wallet integration with boarding passes, tickets, loyalty cards
- International compatibility when traveling
The experience will be identical to Apple Pay in other markets effortless, secure, fast.
For Banks and Card Networks
ICICI, HDFC, and Axis are betting that Apple Pay drives increased card usage among premium customers. The calculation:
- Apple Pay users spend more on average than non-Apple Pay users
- Increased transaction volume offsets whatever fees Apple charges
- Association with Apple brand enhances bank’s premium positioning
Visa and Mastercard benefit from anything that drives card usage in a UPI-dominated market. Apple Pay keeps cards relevant for affluent consumers.
For Merchants
Initially, minimal impact. Merchants with existing contactless payment terminals will support Apple Pay automatically no additional integration needed.
If Apple Pay achieves significant adoption, merchants might see:
- Higher average transaction values (Apple Pay users tend to spend more)
- Faster checkout (biometric authentication is quicker than PINs)
- Reduced cash handling costs
For Apple
This is about three things:
1. Services Revenue: Every transaction generates fees. At India’s transaction volumes, even small percentages add up.
2. Ecosystem Lock-in: Apple Pay makes the iPhone stickier. Once your payment method is integrated, switching to Android becomes more painful.
3. Strategic Presence: Establishing Apple Pay in India positions Apple for the next wave of digital financial services buy-now-pay-later, peer-to-peer payments, potentially even banking services.
The Regulatory Tightrope: What Could Still Go Wrong
Let’s be honest about the risks. Several things could derail or delay this:
Regulatory Approval Uncertainty
The RBI allowing biometric authentication was a big step, but there are additional approvals required:
- Data localization compliance (payment data must be stored in India)
- Consumer protection requirements
- Dispute resolution mechanisms
- Regulatory oversight protocols
If any of these hit snags, the timeline slips.
Fee Structure Deadlock
If Apple, banks, and card networks can’t agree on who pays what, negotiations could stall indefinitely. We’ve seen this before Apple’s been “in talks” since 2017.
UPI Integration Complexity
Without UPI support, Apple Pay in India will be limited to card users a relatively small, affluent subset. If UPI integration proves too complex or regulatorily fraught, adoption will be constrained.
Market Reality Check
Even if everything goes perfectly, Apple Pay might simply not gain traction. Indians are deeply habituated to UPI apps. The convenience advantage Apple Pay offers might not be compelling enough to change behavior.
Political Considerations
There’s always risk that domestic political pressures could complicate foreign tech companies operating in India’s financial infrastructure. This is particularly true if Apple Pay is seen as competing with Indian homegrown payment solutions.
The Broader Strategic Picture: Apple’s India Bet
Zoom out from just Apple Pay and look at Apple’s total India strategy. This payment launch is one piece of a much larger puzzle:
Hardware: Apple manufactures iPhone 16 and 16 Pro in India. Production continues expanding.
Retail: Six Apple Stores now open across India, with more planned.
Services: Apple Pay joins Apple Music, Apple TV+, iCloud, and App Store building a complete services portfolio.
Developer Ecosystem: India has the third-largest iOS developer community globally. Apple invests heavily in developer programs here.
Supply Chain: India is becoming Apple’s second most important production hub after China.
Apple is making a multi-decade bet on India as a critical market. Not just for selling devices, but as an integral part of Apple’s global operations.
Apple Pay is the services cornerstone of that strategy. If Apple can establish payment infrastructure in India, it opens the door to broader financial services down the road lending, wealth management, banking.
Think about Apple Card (US-only currently), Apple Savings (US-only), Apple Buy Now Pay Later (select markets). These are all products Apple could potentially bring to India once Apple Pay establishes a payment foothold.
The long game isn’t just payment fees from tap-to-pay transactions. It’s positioning Apple as a financial services platform for India’s emerging affluent class.
What Happens Next: The Timeline to Launch
Based on today’s reports and the stated “mid-2026” target, here’s the likely timeline:
March-April 2026: Finalize commercial agreements with banks and card networks. Lock in fee structures, revenue sharing, and operational protocols.
May-June 2026: Complete regulatory approvals from RBI and other relevant authorities. Finalize data localization and compliance requirements.
July-August 2026: Technical integration and testing. Ensure Apple Pay works with Indian banking infrastructure, payment terminals, and regulatory reporting systems.
September-October 2026: Soft launch with select ICICI, HDFC, and Axis cardholders. Beta test with limited users to identify and fix issues.
Late 2026/Early 2027: Broad public launch with marketing campaign. Expand to additional banks and card issuers.
2027+: UPI integration, additional features, expanded partnerships.
This timeline is “fluid” Apple’s favorite word when they want to avoid commitment. It could slip. But the fact that Bloomberg is reporting active negotiations with specific banks suggests this is real, not aspirational.
The Bottom Line: This Matters More Than You Think
It’s easy to dismiss this as “Apple finally doing what should have happened years ago” or “just another payment app in an overcrowded market.”
But here’s why it actually matters:
For Consumers: More choice is good. If Apple Pay delivers better security, privacy, and convenience for certain use cases, consumers benefit.
For the Market: Apple Pay’s entry will force competitors to improve. Competition drives innovation in features, security, and user experience.
For Financial Inclusion: While Apple Pay targets affluent users initially, it validates biometric payments and could accelerate adoption of similar technologies across the market.
For Apple: This completes Apple’s services portfolio in India and enables future financial services expansion in a massive market.
For India’s Digital Economy: Apple Pay’s entry signals India’s maturation as a digital payments ecosystem attractive to global tech giants.
The announcement that dropped this morning Apple in active talks with ICICI, HDFC, and Axis — represents a genuine inflection point after years of false starts.
Tim Cook has been promising Apple’s commitment to India for years. Apple Pay is where that commitment becomes tangible for everyday consumers.
Will Apple Pay dominate India’s payments market? No. PhonePe and Google Pay have insurmountable leads for the mass market.
Will Apple Pay carve out a profitable niche serving India’s iPhone users with seamless, secure payments integrated into the Apple ecosystem? Almost certainly.
And that’s enough. Apple doesn’t need to win the whole market. It needs to win its market the premium segment that values the Apple experience and is willing to pay for it.
After 12 years of waiting, that’s finally about to happen.
Mid-2026. Mark your calendars. Apple Pay is coming to India.
Apple has declined to comment officially on the reports. ICICI Bank, HDFC Bank, Axis Bank, Visa, and Mastercard have not responded to requests for comment. The timeline remains subject to completion of commercial negotiations and regulatory approvals. This article will be updated as more information becomes available.
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