Apple Pay eyes India rollout with Axis Bank, sources say

Apple is preparing to launch Apple Pay in India next month in partnership with Axis Bank, sources familiar with the matter have disclosed. This move comes as the U.S. company seeks to expand its payment service offerings in one of the few remaining major economies where it is not currently available. Starting with Axis Bank, the launch would enable Apple Pay to be introduced in India, a significant step forward for the company.

Axis Bank, headquartered in Mumbai, is the fourth-largest credit card issuer in the country. While Apple Pay has been engaged in discussions with other major private sector banks like HDFC Bank and ICICI Bank, agreements on commercial terms have not yet materialized. The companies were not available for comment when contacted by Reuters.

Apple Pay allows iPhone users to make tap-and-pay purchases using tokenized card details stored on their devices, without needing to use a separate payments app. According to one source, Apple plans to add more lenders over time through individual, bank-by-bank deals, similar to phased rollouts in other markets.

The company's presence in India's smartphone market has grown significantly, doubling to 8% since 2022, according to Counterpoint Research. This establishes Apple as one of the largest markets for its devices. However, Apple Pay will join a highly competitive digital payments landscape. The Unified Payments Interface, a homegrown payment system that enables transfers via QR codes, phone numbers, and tap and pay, dominates the market, accounting for 84% of India's digital payments volume.

In June 2022, the Reserve Bank of India permitted biometric authentication for card payments, allowing Apple's payment service to work with Indian bank cards using Face ID and Touch ID. Axis Bank, which issued 16.26 million credit cards in July, ranks fourth among Indian banks in terms of credit card issuance, trailing behind HDFC Bank, SBI Cards, and ICICI Bank.