Apple Pay Could Launch In India By October Without UPI Support
· Free Press Journal
After a lot of delay, Apple is reportedly preparing to launch Apple Pay in India as early as October, marking the iPhone maker's entry into the country's digital payments market. The service would initially support only credit cards, giving Apple a foothold in India's premium card segment while also earning the company a cut on every transaction processed through it.
No UPI support at launch, Apple in talks with card networks
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According to a Business Standard report, Apple Pay in India will begin by supporting global card networks such as Visa and Mastercard, following the same model the service uses in other markets. Unified Payments Interface support will not be available when the service goes live, since enabling UPI would require sign-off from the National Payments Corporation of India as well as a partnership with a sponsor bank to route transactions. Once live, users would be able to store their cards on Apple Wallet and make contactless payments at compatible point-of-sale terminals using near-field communication, the report said.
Apple Pay Faces Roadblock Due To Pricing Hurdles Ahead Of India LaunchApple pushing for higher share of interchange fee, banks resisting
Apple has spent months negotiating with India's largest credit card issuers over how much of each transaction it would be paid, according to the report. The fee is expected to be drawn from the interchange revenue that banks already earn on card payments, rather than being passed on to customers or merchants. Sources cited in the report said Apple has been seeking a 15 to 20 basis point share of the interchange fee per transaction, while some larger banks have pushed back with an offer closer to 10 basis points. The report noted that Apple had told the industry it plans to have the service ready by the end of September or October, according to one source.
Payments industry expects a boost to credit card usage
The report quoted Pine Labs chief executive officer Amrish Rau, who said during the company's June quarter earnings call that Apple Pay is expected to enter the Indian market before the end of 2026, and that credit card transactions could see a further lift as a result, growing alongside UPI. Rau noted that credit card payment volumes were already climbing by around 10 to 15 per cent in the market. Apple Pay currently operates in more than 90 countries, and its planned India launch comes as the company has posted double-digit growth in the Indian market alongside Latin America and South East Asia, the report added.