Apple Pay Set to Launch in India with Axis Bank
Apple Pay is expected to launch in India today with Axis Bank as its initial partner. The service will begin with limited support for select cards and merchants.
Apple is set to launch its payment service, Apple Pay, in India on Tuesday. Axis Bank will serve as the initial partner, with the service initially supporting only eligible Axis Bank Visa and Mastercard cards. Usage will be restricted to merchants and payment terminals that have enabled the service.
India's digital payments market is currently dominated by the Unified Payments Interface (UPI) system, which facilitates instant bank-to-bank transfers without the need for cards. Apple Pay, conversely, is card-based and requires broad integration with banks and payment providers.
Delays in the launch have reportedly stemmed from negotiations over commercial terms. Apple is seeking a transaction fee of approximately 0.20%, which represents a significant portion of the payment layer's margin. This fee structure aligns with Apple's models in other markets.
Major Indian banks, including HDFC Bank, ICICI Bank, and SBI Card, are not expected to support Apple Pay at launch as agreements have yet to be finalized. Apple, Axis Bank, and the other mentioned banks have not commented on the matter.