Apple Pay Reportedly Nearing India Launch With Axis Bank Partnership

Apple is reportedly preparing to launch its Apple Pay service in India as early as next month, with Axis Bank likely to be its initial banking partner. The iPhone maker is expected to first enable Axis Bank credit cards on the platform before expanding to include other lenders, according to Reuters.

Discussions have also taken place with HDFC Bank and ICICI Bank for the India rollout, but these institutions have yet to agree on commercial terms. This move would signify a significant step in Apple's long-standing effort to introduce its payment service to India, a major market where it remains unavailable.

Previous attempts to launch Apple Pay in India faced regulatory and technical hurdles, including data localization requirements and integration challenges with the Unified Payments Interface (UPI). Apple Pay allows users to make contactless payments using tokenized card details stored on their devices, authenticated via Face ID or Touch ID.

The launch comes after India's central bank last year permitted alternative authentication mechanisms, including biometrics, which paved the way for services like Apple Pay to integrate with local card payments. However, Apple Pay will enter a market overwhelmingly dominated by UPI, which handles approximately 84% of digital payment volumes.

Apple has reportedly encountered friction over fee sharing with potential banking partners and card networks like Mastercard and Visa, seeking a share of the interchange fee while banks have proposed lower rates.