Apple Pay Launches in India with Axis Bank Partnership
On Tuesday, Apple officially rolled out its Apple Pay service in India, marking a significant step in the company’s efforts to penetrate the world’s most populous country. This launch follows years of anticipation and logistical delays, and Apple’s first banking collaborator is Axis Bank, which ranks as India’s third-largest private lender.
Limited Initial Rollout
The initial availability of Apple Pay is somewhat restricted. Currently, the service supports eligible Axis Bank credit cards on Visa and Mastercard networks but excludes India’s indigenous RuPay system. Additionally, the acceptance of Apple Pay will be limited to merchants and payment terminals that have been configured to accommodate the service.
Merchant Acceptance and Collaborations
Apple has announced that its payment service will be accepted by “millions of merchants” across the nation. Notable companies that will integrate Apple Pay into their payment systems include Blinkit, Croma, Ixigo, Reliance brands, Tata 1mg, and Zomato. To facilitate this acceptance, Apple has partnered with various payment service providers such as Cashfree, JusPay, Mswipe, Paytm, PayU, Pine Labs, Razorpay, and Worldline.
Apple Pay vs. UPI: A Complex Landscape
India’s payment infrastructure is distinct from that of the U.S. and other markets due to the prevalence of the state-supported Unified Payments Interface (UPI). This innovative system enables users to make instant bank-to-bank transfers without relying on credit cards. In contrast, Apple Pay is card-based and necessitates cooperation from individual banks and payment infrastructure providers for integration, making a widespread rollout more complicated.
Commercial Terms Causing Delays
Apple is reportedly seeking a transaction fee of about 20 basis points (0.2%), which constitutes a significant portion of the average profit margin range of 40 to 50 basis points (0.4% to 0.5%) in India’s payments sector. This fee structure aligns with Apple Pay’s model in other countries but has caused negotiation challenges with several major banks, such as HDFC Bank, ICICI Bank, and SBI Card, which opted not to support Apple Pay at launch.
Targeting India’s Affluent iPhone Users
Despite the competitive landscape dominated by UPI, Apple Pay could find traction among India’s growing base of iPhone users, who generally belong to a more affluent demographic and are more inclined to use premium credit cards. While Apple Pay may initially cater to a niche market, its economic implications could still be valuable for Apple, opening another avenue to monetize its expanding user base in India.
How to Use Apple Pay
At launch, eligible customers of Axis Bank can seamlessly add their credit cards to the Wallet app and utilize Apple Pay for online purchases and contactless transactions at authorized terminals. However, acceptance may be inconsistent initially, as a transaction at one terminal enabled for Apple Pay could fail at another not set up for the service.
Broader Implications for Apple in India
This launch represents a pivotal addition to Apple’s expanding operations in India, where the company has been increasing its iPhone sales, local production, and retail presence. According to a previous report by Counterpoint Research, Apple held a 28% market share by value in India’s smartphone sector in early 2025, a rise from the previous year’s 23%.
India is also critical for Apple’s production strategy, contributing approximately 25% to global iPhone manufacturing—a figure set to rise to between 30% and 35% in the coming years, as reported by the Indian English daily, Business Standard.
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