Apple has officially rolled out Apple Pay in India, partnering first with Axis Bank, the country’s third-largest private bank. This launch marks Apple's entry into the massive Indian digital payments market, which has long been dominated by the government-backed Unified Payments Interface (UPI) system that enables instant bank-to-bank transactions without cards. Apple Pay’s initial launch supports only select Axis Bank Visa and Mastercard credit cards and excludes India's RuPay network. Moreover, acceptance is limited to merchants using terminals configured for Apple Pay, meaning the rollout will be gradual and uneven in coverage.

Unlike India’s widespread UPI system, Apple Pay is card-dependent and requires specific agreements and integration with banks and payment providers. Apple’s standard commercial model asks for about a 0.2% transaction fee, which has caused some major banks like HDFC Bank, ICICI Bank, and SBI Card to hold back from supporting the service during the initial launch period. These banks are reportedly still negotiating terms with Apple, and there is no word yet on when or if they will come on board. Apple and the banks involved have not yet provided official comments about the launch.

Apple Pay’s timing aligns with a growing market share for iPhone users in India, who tend to have more premium credit cards and stronger purchasing power, making the service attractive despite UPI dominance. Accepting Apple Pay could therefore be lucrative for banks even if it serves a smaller card payments segment. Currently, only Axis Bank’s eligible customers can add their credit cards to the Apple Wallet app for online and contactless payments at enabled points of sale. However, acceptance inconsistency may pose challenges since some terminals may support the service while others may not.

This launch complements Apple’s broader India strategy, where it has been expanding iPhone sales, local manufacturing, and retail operations. Last year, Apple captured 28% of the smartphone market by value in India, up from 23% previously, and India produces almost a quarter of global iPhones. Apple’s growing footprint in India makes it a strategically important market, and Apple Pay’s introduction adds a new revenue stream by monetizing India’s growing base of premium iPhone users through transaction fees on payments.