Apple Pay Likely To Launch In India By October: Report

Apple's mobile payment system, Apple Pay, is expected to become available in India by the end of September or October, according to a Business Standard report. The launch would allow iPhone users to make contactless payments at NFC-enabled point-of-sale terminals using their Apple Wallet. Initially, Apple Pay will support credit cards issued on global payment networks like Visa and Mastercard, but UPI payments will not be available at launch.

To launch, Apple needs approval from the National Payments Corporation of India (NPCI) and a partnership with a sponsor bank for routing UPI transactions. Apple is in discussions with India's largest credit card issuers about the fee it would earn on transactions through Apple Pay, seeking a 15-20 basis points share of the interchange fee, while some card issuers propose a lower 10 bps fee.

Apple Pay is anticipated to be rolled out in phases, with the first phase focusing on card-based contactless payments. The potential launch could increase credit card usage in India, as Pine Labs CEO Amrish Rau noted. Apple has been pursuing this goal for nearly a decade, facing regulatory and technical challenges before. Apple's India expansion also includes accepting credit and debit card payments for App Store purchases and subscriptions after overcoming RBI regulatory changes.