Apple is nearing a potential October launch of Apple Pay in India, but the service may initially exclude UPI integration, highlighting ongoing regulatory and commercial challenges in the world’s second-largest smartphone market.
Apple Pay could be on the verge of an India debut as Apple reportedly edges closer to agreements with local banks, but the first release may arrive in a pared-back form that excludes UPI, the country’s dominant retail payment rail. Business Standard reported that Apple is aiming for a launch around the end of September or in October, although the company has not confirmed any timetable.
According to the report, Apple is in talks with major Indian lenders as it prepares the service for the market. The initial version is expected to centre on credit cards from networks such as Visa and Mastercard, allowing users to add eligible cards to Apple Wallet and pay by tapping compatible Apple devices at checkout. Bloomberg reported in February that Apple had already been discussing the rollout with ICICI Bank, HDFC Bank, Axis Bank, Visa and Mastercard, with a launch in 2026 under consideration.
That approach would leave out the feature many Indian users are most likely to expect. UPI is not believed to be part of the first launch, and Apple would need approval from the National Payments Corporation of India plus a sponsor bank before it could offer the service. In practice, that means the opening version of Apple Pay could be far less useful for everyday spending in India than it is in other markets, where tap-to-pay often sits alongside a broader set of payment options.
The commercial side of the negotiations appears to remain a key hurdle. Business Standard said Apple is seeking roughly 15 to 20 basis points per transaction, while banks are pushing for closer to 10 basis points. Those charges would reportedly come out of interchange revenue rather than being passed directly to shoppers or merchants. Moneycontrol reported in May that the launch had been delayed because Apple and major banks were still working through those revenue-sharing terms, even though the technology and infrastructure were said to be ready.
There are, however, signs that the environment is becoming more favourable. The Reserve Bank of India recently allowed biometric authentication such as Face ID and Touch ID for certain digital payments, a change that aligns more closely with Apple’s security model, according to earlier reporting by MacRumors. Apple also restored credit and debit card payments for App Store and iCloud transactions in India in July, after a long suspension tied to changes in the country’s recurring payments rules, which suggests the company has been rebuilding its payments footprint in the market. Still, Apple has not announced Apple Pay for India, so any October launch remains a reported target rather than a confirmed commitment.
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