Apple enters India payments market, taking on Google and Paytm

Apple has launched its Apple Pay service in India, aiming to strengthen its foothold in a rapidly growing market with over a billion potential users. This marks the company's first entry into the Indian payments landscape, partnering with Axis Bank to enable customers to store their credit or debit cards in the Apple Wallet on iPhones and Apple Watches.

Users can then conveniently make payments using these devices. Apple is targeting the rapidly expanding middle class in India, a country known for its burgeoning affluent consumers who primarily use Android devices. Apple Pay utilizes Face ID or Touch ID for in-person, website, and app-based payments, with plans to support more banks’ cards and the state-backed UPI system in the future.

As it stands, Google Pay, Walmart-controlled PhonePe, and homegrown Paytm lead India’s competitive payments market. The launch of Apple Pay is anticipated to further stimulate demand for Apple’s premium devices, which have already seen an increase in the number of company-owned shops in India and a shift in manufacturing operations to the country.