Apple Pay has officially launched in the Indian market. According to a report by TechCrunch, the company has begun rolling out its long-awaited payment service to users in the country.

Axis Bank, the country’s third-largest private sector organization, has been selected as the primary banking partner for the service. This step means Apple is entering the payment ecosystem of the world’s most populous country.

The Apple Pay Era in India

Initially, Apple Pay only supports Visa and Mastercard cards provided by Axis Bank. India’s local payment network, RuPay, is not currently included in the system.

The company has partnered with service providers such as Cashfree, JusPay, Mswipe, Paytm, PayU, Pine Labs, Razorpay, and Worldline to enable payment acceptance. This extensive network indicates Apple’s aim to strengthen its commercial operations in India.

The digital payment market in India is shaped by the state-backed UPI system, which allows direct money transfers between bank accounts. Apple Pay, however, differs from this system with its card-based structure and requires the integration of individual card providers.

Commercial Challenges and Future Expectations

Apple’s commercial rules are causing disagreements with some major banks in the country. The company is reportedly charging a fee of approximately 20 basis points, or

0.2 percent

, for processing fees. This rate represents a significant cost for banks, considering the margin in the payment layer is around 0.4% to 0.5%. It is stated that institutions such as HDFC Bank, ICICI Bank, and SBI Card did not participate in the launch due to ongoing negotiations on commercial terms.

Although Apple Pay enters a market dominated by UPI in India, the increasing number of iPhone users gives the company hope. The fact that iPhone owners mostly represent a wealthier segment and tend to use premium credit cards increases the potential for adoption of the service.

Apple is constantly increasing its iPhone sales, local manufacturing capacity, and retail presence in India. According to Counterpoint Research, Apple’s share of the Indian smartphone market reached 28% by 2025.

Although Apple Pay initially targets a limited user base, it forms a significant part of the company’s growth strategy in India. Do you think Apple Pay can shake the dominance of the UPI system in India?

Apple Pay has been launched in India in collaboration with Axis Bank. The card-based payment system targets iPhone users in the country.