Apple Pay Launch In India Puts Spotlight On RBI's New Rules For Digital Payments

Apple Pay was launched in India on September 30, 2026, 12 years after its global debut. The service allows payments via compatible bank cards, Face ID, Touch ID or passcode on compatible iPhones, iPads and Apple Watches.

This launch coincides with the introduction of new regulations by the Reserve Bank of India (RBI) on digital payments, which permit banks and payment service providers to leverage a broader range of options to verify transactions. In this, RBI has kept the two-factor authentication (2FA) requirement unchanged, but expanded the ways to comply with the requirement.

More Payment Options with New RBI Rules

OTPs have been a very common component of card payments in India until recently. Customers often had to enter a code that was sent to their phone in order to approve an online transaction. This was also targeted by scammers to persuade victims to provide their codes. Other verification methods like biometrics, digital tokens and in-app notifications have been identified by RBI's Payments Vision 2025 as additional methods of verifying transactions.

The central bank has also issued directions on the authentication mechanisms for digital payment transactions since September 2025, which will come into effect in April 2026, and give payment providers the flexibility to accept payments through device-based biometrics, subject to security requirements outlined in the rules. The framework also assigns liability to payment issuers when there are authentication failures.

UPI Already Supports Biometric Verification

India's Unified Payments Interface (UPI) is also available for biometric payments. The National Payments Corporation of India (NPCI) launched fingerprint and facial recognition as alternatives to the UPI PIN entry process in October 2025. According to NPCI, in June 2026 alone, UPI carried out over 611 million transactions worth Rs 25,416 crore, which were authorised through fingerprint or facial recognition.

With Apple Pay, this payment option now applies to compatible cards. But the service is not yet available for RuPay cards or UPI, which represent around 84 per cent of India's digital payment transactions.

Devices and Eligibility of the Cards

Not all cards or devices support Apple Pay. Customers must have an Apple-compatible device and a card from one of the participating banks. Currently, it is geared towards supported cards in India and not towards UPI payments.

Access to compatible devices also plays a role in the use of biometrics. If the customer doesn't have a phone with biometric capabilities or if the fingerprint is hard to recognise, then other means of authentication are needed. PINs and OTPs, therefore, continue to have a significant role in digital payments across the country. According to RBI guidelines, alternative methods have also been allowed, and payment providers are required to adhere to the applicable security standards.