Apple has begun rolling out Apple Pay in India, marking a long-awaited entry into a payments market dominated by the state-backed Unified Payments Interface (UPI) network. The first phase is limited to customers of Axis Bank, India’s third-largest private bank, who hold eligible cards operating on the Visa and Mastercard networks.
Customers can add their credit cards to the Apple Wallet app and use Apple Pay for online purchases or contactless payments at service-enabled terminals and points of sale. The launch does not include RuPay cards, India’s domestic card network.
Limited Rollout and Uneven Acceptance
Having an eligible card will not mean that Apple Pay works everywhere. The success of a transaction also depends on whether the service has been enabled by the merchant and the infrastructure provider or acquiring bank handling the payments. According to the source, a transaction may succeed through a terminal operated by an entity that supports Apple Pay, while failing through another terminal where the acquiring bank has not yet enabled the service.
These conditions make the initial acceptance footprint uneven and add complexity that is not usually visible in the UPI payment experience, which enables direct transfers between bank accounts using a QR code without relying on cards.
Fees Hinder the Expansion of Partnerships
Apple is requesting a fee of approximately 20 basis points, or 0.2% of the transaction value, according to people cited by TechCrunch. This represents a significant portion of the payments layer’s margin, which ranges from approximately 40 to 50 basis points, according to the source.
HDFC Bank, ICICI Bank, and SBI Card have not joined the rollout, while negotiations over the commercial terms continue. Apple, Axis Bank, and the banking institutions mentioned did not respond to requests for comment.
What Does Entry into the Indian Market Change?
Apple is entering a market that differs fundamentally from the United States and economies where cards dominate; UPI handles most digital payments in India. As a result, Apple Pay initially targets a narrower segment of card users and does not offer a general alternative to the direct bank-payment system.
Nevertheless, India’s iPhone user base, which tends to have higher incomes and premium credit cards, may be sufficient to give the service commercial value even if its use remains limited. Transaction fees also give Apple an additional channel for generating revenue from iPhone users in the country.
The rollout coincides with Apple’s expansion in India across iPhone sales, local manufacturing, and retail stores. According to figures reported by the source citing Counterpoint Research, Apple accounted for 28% of India’s smartphone market by value in 2025, up from 23% the previous year.
The open question remains whether Apple will be able to expand its network of banks and acceptance locations, particularly amid UPI’s dominance and financial institutions’ sensitivity to Apple’s fees. For now, the current phase puts the service through a limited practical test: converting the base of iPhone users and premium cardholders into repeat usage, despite the lack of RuPay support and the varying readiness of payment terminals.