Apple Pay Prepares India Launch With Axis Bank Partnership

Apple is preparing to introduce its Apple Pay service in India next month, marking a significant entry into one of the world's largest digital payments markets. The rollout will begin with a partnership with Axis Bank, the country's fourth-largest credit card issuer, according to sources familiar with the matter. Apple intends to follow a phased expansion strategy, gradually adding more lenders through direct, bank-by-bank agreements.

While Apple has held discussions with other major private-sector lenders, including HDFC Bank and ICICI Bank, commercial terms with those institutions have yet to be finalized. The launch represents a notable shift for the U.S. technology giant, which has seen its share of the Indian smartphone market double to 8% since 2022. By integrating with the local card-payment ecosystem, Apple aims to offer iPhone users a tap-and-pay experience that utilizes tokenized card details stored directly on their devices, bypassing the need for separate payment applications.

Apple Pay enters a highly competitive landscape currently dominated by the Unified Payments Interface (UPI), which accounts for approximately 84% of India's digital payment transaction volume. Despite this dominance, recent regulatory adjustments by the Reserve Bank of India have created a more favorable environment for Apple's service. The regulator now permits biometric authentication for card payments, allowing Apple to leverage Face ID and Touch ID for secure transactions.

Axis Bank, which reported 16.26 million active credit cards as of July, serves as the initial anchor for this rollout. Apple's approach of securing individual agreements mirrors its expansion strategy in other global markets. The company continues to negotiate with larger rivals to broaden the service's reach, though the timeline for these additional partnerships remains dependent on the conclusion of commercial negotiations. Neither Apple nor the involved banks have provided official confirmation of the launch details, as the ongoing discussions remain private.