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Apple Pay set to launch in India with Axis Bank today, sources say
Apple is set to launch Apple Pay in India today, partnering with Axis Bank to offer its payment service, initially supporting eligible Visa and Mastercard cards. The service faces competition from UPI, India's dominant payment system, and is complicated by Apple's transaction fee structure, which could affect broader adoption, especially among larger banks not participating at launch.
Key points
- Apple Pay launches in India with Axis Bank as initial partner.
- Initial rollout limited to Axis Bank Visa and Mastercard cards, excluding RuPay.
- Payments will be card-based, making it complex compared to UPI's bank-to-bank system.
- Apple seeks about 20 basis points transaction fees, which is a concern for banks.
- Major banks like HDFC, ICICI, and SBI not participating at launch due to negotiations.
- While UPI dominates, Apple Pay targets affluent iPhone users, potentially creating a niche market.
- Customers can use Apple Pay for online and contactless payments at supported terminals, but acceptance may vary.
Why it matters
- The launch corresponds with India's growing digital payments landscape, heavily influenced by UPI.
- Apple's engagement in India mirrors a global trend where tech firms expand into emerging markets for digital payments.
- By 2025, mobile payment adoption is expected to increase, with companies diversifying their offerings to capture market share, aligning with Apple's strategy.
The launch of Apple Pay in India marks a significant entry into a rapidly evolving payments landscape, despite challenges posed by UPI's dominance and the initial limited rollout, appealing primarily to affluent iPhone users.