Overview
- Multiple outlets reported on Sept. 18 that Apple is poised to begin a phased launch of Apple Pay in India next month starting with Axis Bank credit cards, though Apple and the banks have not confirmed the plan.
- Apple plans to add lenders one at a time through direct deals, and talks with larger issuers including HDFC Bank and ICICI Bank remain unresolved over commercial terms.
- Negotiations have centered on how interchange fees will be split, with reports saying Apple has sought roughly 15–20 basis points while some banks have offered about 10 basis points.
- A regulatory change last year by the Reserve Bank of India that permits biometric authentication for card payments cleared a key technical hurdle and allows Face ID or Touch ID to be used for Apple Pay.
- The service will enter a market where UPI handles about 84% of digital payment volume, Axis Bank has around 16.26 million active credit cards, and Apple’s roughly 8% smartphone share will limit the addressable user base at launch.