Apple Pay Launches in India Amid Intense Competition

Apple Pay has officially launched in India on September 30, 2026, more than a decade after CEO Tim Cook first indicated the service would arrive in the country. The rollout allows users to make payments at physical stores, within apps, and on websites using their iPhone, iPad, or Apple Watch.

The launch enters a market with a highly developed digital payments landscape. India's Unified Payments Interface (UPI) processed over 24 billion transactions in August 2026, highlighting its entrenched position among consumers. Apple Pay's initial offering is limited, supporting only Visa and Mastercard credit cards issued by Axis Bank, excluding RuPay cards and those from other financial institutions.

Industry analysts, such as Tarun Pathak from Counterpoint Research, view Apple Pay's India entry as late from a global perspective. Potential reasons for the delay include regulatory hurdles and Apple's relatively smaller user base in India. The company's strategy relies on its proprietary NFC-based payment architecture and the security features of its devices.

A primary challenge for Apple Pay is the overwhelming dominance of UPI. Unlike many Western markets, India's digital payment ecosystem is built on direct bank-to-bank transfers, fortified by UPI applications like PhonePe and Google Pay. Apple Pay does not integrate with UPI, thus restricting its primary user base to those owning Apple devices and specific credit cards. While Samsung Wallet offers NFC payments on Android devices, it has not significantly challenged UPI's market share.

Looking ahead, Apple Pay may stimulate credit card usage, particularly for larger purchases among Apple users. Analysts anticipate that while UPI will continue to grow, the proportion of credit card transactions could increase with the introduction of Apple's service. However, it remains uncertain whether Apple Pay will integrate UPI in the future, given NPCI's data storage requirements and Apple's own privacy policies.