Apple Pay eyes India rollout with Axis Bank, sources say

Apple is set to introduce Apple Pay in India next month, with initial support from Axis Bank's credit cards, according to three sources familiar with the matter. This move aims to expand Apple's payment service in the world's most populous country, where it currently lacks availability. Axis Bank, the fourth-largest credit card issuer in India, will be the sole banking partner for the launch, marking Apple's first major banking collaboration in India's digital payment landscape.

While Apple has been in discussions with larger private sector rivals like HDFC Bank and ICICI Bank, these talks have yet to reach a commercial agreement. Sources indicate that Apple plans to expand its partner network over time through individual bank deals, mirroring similar rollouts in other markets. Apple's share of India's smartphone market has surged to 8% since 2022, highlighting its growing influence in the country.

Despite the entry of Apple Pay, the digital payments market in India remains highly competitive, with Unified Payments Interface (UPI) holding a dominant position at 84% of the digital payments volume. UPI allows transfers via QR codes, phone numbers, and tap-and-pay methods. The Reserve Bank of India's recent approval of biometric authentication for card payments has enabled Apple's payment service to function seamlessly with Indian bank cards using Face ID and Touch ID.

Axis Bank, boasting 16.26 million active credit cards as of July, lags behind rivals HDFC Bank, State Bank of India (SBI) Cards, and ICICI Bank in terms of issuance, as per RBI data.