Apple Pay launches in India with Axis Bank, facing challenges from UPI dominance
Apple Pay has launched in India, initially partnering with Axis Bank for Visa and Mastercard credit cards.
In Brief
- •Apple Pay has launched in India, initially partnering with Axis Bank for Visa and Mastercard credit cards.
- •The service is limited to specific merchants and payment terminals, and does not support RuPay or UPI.
- •Apple is charging a 20 basis points fee on transactions, which has led to delays with other major banks.
- •India's digital payments market is dominated by UPI, making Apple Pay a niche service.
- •Apple Pay could appeal to affluent iPhone users, potentially increasing its market share in India.
Why It Matters
Apple Pay's launch in India marks a significant step for the company in the world's most populous market. However, the service faces stiff competition from the widely used UPI system. The launch could also provide Apple with additional revenue streams from its growing base of iPhone users in India. The move also highlights the challenges of expanding a global payment service into a market with a dominant local alternative.
Key Details
- Initial Partner
- Axis Bank
- Supported Cards
- Visa and Mastercard
- Transaction Fee
- 20 basis points (0.2%)
- Market Dominance
- UPI
- Apple's Market Share
- 28% of India's smartphone market by value in 2025
Context & Background
India's digital payments market has seen a significant boom, driven largely by the state-backed Unified Payments Interface (UPI) system. This system allows consumers to make instant bank-to-bank payments without relying on cards, making it a dominant force in the market.
Original Reporting & Sources
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