Apple Resumes Card Payments for Apple Account Purchases in India
Apple has begun restoring card payments for Apple Account purchases in India more than four years after withdrawing the option. This move is a clear indication of how the iPhone maker is adapting its services to meet regulatory changes that have significantly impacted the country’s digital payments landscape.
Phased Rollout of Card Payment Options
The latest update, which is being introduced in phases, allows users in India to add eligible Visa and Mastercard credit and debit cards to their Apple Account. This feature enables them to pay for popular subscriptions such as iCloud+ and Apple Music, as well as making purchases on the App Store.
The Reason Behind the Withdrawal
In May 2022, Apple suspended card payments in India due to modifications in the country’s recurring payments framework. Following this withdrawal, users turned to alternatives like UPI (Unified Payments Interface), net banking, and Apple Account balance for their subscription services and other digital purchases.
Adapting to Regulatory Changes
This development underscores the broader challenges that Apple faces, as governments around the globe impose their own rules on digital platforms. Increasingly, these regulations require Apple to fine-tune its products, payments, and services to conform to local laws rather than provide a one-size-fits-all global solution. Similar adaptations have occurred in Europe, Japan, and South Korea, affecting various aspects of app distribution and payment systems.
Technical Adjustments and Customer Authentication
According to sources familiar with the matter, Apple has implemented the necessary backend changes to facilitate card payments that align with India’s regulatory framework. This phased rollout has commenced recently and is anticipated to expand to all eligible users over time. Additionally, Apple has updated its support documentation to reflect these changes.
Impact of the Reserve Bank of India’s Framework
The regulatory framework introduced by the Reserve Bank of India in 2021 mandated merchants and payment providers to enhance customer authentication for recurring card payments and adopt tokenized card credentials. This change also prohibits merchants from storing customers’ card information, which disrupted subscription billing for various domestic and international companies until they updated their systems accordingly.
Expert Insights on the Restoration
“It’s long overdue but happening finally. This solves one of the friction points for subscription renewals,” remarked Tarun Pathak, research director at Counterpoint Research. He noted that despite the absence of direct card payments, Apple’s services business in India has continued to grow at a double-digit rate. However, reinstating this payment method becomes increasingly crucial as Apple’s user base expands and customers expect various payment options.
Future Prospects: Apple Pay in India
The restoration of card payments has sparked renewed speculation about the potential launch of Apple Pay in India. Various media reports have surfaced indicating that the company has explored the possibility of introducing this mobile payments service in the country, although Apple has not made any official announcement regarding its launch.
Apple has not responded to requests for comment.
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