Apple Pay Set for India Launch With Axis Bank

Apple is preparing to launch Apple Pay in India next month, initially partnering with Axis Bank to support the lender’s credit cards, according to three people familiar with the plans. The rollout would bring Apple’s digital payment service to one of the world’s largest consumer markets, where it has remained unavailable despite the company’s growing iPhone presence.

Axis Bank, India’s fourth-largest credit card issuer, is expected to serve as Apple Pay’s first major banking partner. Apple has also held discussions with HDFC Bank and ICICI Bank, two larger private-sector lenders, but commercial terms have yet to be finalized, according to sources familiar with the negotiations.

Apple, HDFC Bank, ICICI Bank and Axis Bank did not provide substantive comments on the reported plans.

Apple Pay enables iPhone users to make contactless purchases by storing tokenized card credentials on their devices. Customers can authorize transactions using Face ID or Touch ID without opening a separate payment application.

Apple reportedly intends to expand Apple Pay support gradually by negotiating individual agreements with Indian banks, following a phased strategy similar to launches in other countries.

The timing comes as Apple strengthens its position in India. The company's share of the country's smartphone market has doubled since 2022 to around 8%, according to Counterpoint Research, making India an increasingly important market for the iPhone maker.

However, Apple Pay will enter a highly competitive Indian digital payments industry dominated by the Unified Payments Interface, or UPI. The homegrown system, which supports transactions through QR codes, phone numbers and contactless payments, accounts for approximately 84% of India's digital payment volume.

Regulatory changes have also helped pave the way for Apple Pay. The Reserve Bank of India last year permitted biometric authentication for card transactions, allowing services using Face ID and Touch ID to operate with Indian-issued bank cards.

RBI data showed Axis Bank had 16.26 million active credit cards in July, placing it behind HDFC Bank, SBI Cards and ICICI Bank by cards issued. The planned Apple Pay India launch could give Axis customers another contactless payment option while expanding Apple's financial services ecosystem in the country.