An article summarized by TechCrunch:
Apple has launched Apple Pay in India, starting with Axis Bank as its first banking partner. The rollout is limited to eligible Axis Bank Visa and Mastercard cards, while India’s RuPay network is not supported yet. Apple says millions of merchants could eventually accept Apple Pay, including Zomato, Blinkit, Croma, Reliance brands and Tata 1mg.
The bigger challenge is that India’s payments market is dominated by UPI, a government-backed system that allows people to pay directly from their bank accounts by scanning QR codes. Apple Pay is card-based, making it more complicated to expand. Major banks including HDFC, ICICI and SBI Card have not joined the launch, reportedly because of disagreements over Apple’s fees. Apple is seeking about 0.2% of transactions, which could take a significant share of the relatively small margins banks and payment companies earn.
Still, India could become strategically important for Apple because its iPhone users tend to be more affluent and more likely to use credit cards. Even if Apple Pay remains a relatively niche payment method compared with UPI, Apple could generate additional revenue from transactions while strengthening its broader presence in India. The launch also comes as Apple expands iPhone sales, manufacturing and retail operations in the country.
