Summary of this article
Apple Pay plans phased India launch by 2026
Initial rollout likely limited to card-based payments
UPI integration faces regulatory and structural challenges
Apple Inc. is planning to extend its digital payments arm, Apple Pay, in India by the end of 2026. This marks a significant shift in the digital payments market
India has made extensive steps towards digitalisation. One such step was the induction of the Unified Payments Interface (UPI). UPI growth in India has been explosive; the masses absorbed it and made it a part of their day-to-day lifestyle very easily. UPI is the backbone of digital payments in India today.
A Phased Rollout Strategy
India is the fastest-growing digital market, which can be the reason behind this expansion by the tech company. This update comes after years of regulatory negotiation and ecosystem constraints. Apple Pay is already widely used in 90 markets worldwide. Initially, this focuses on card-based contactless payments, which is a model that requires consumers to save.
As per a report by Business Standard, Apple’s India entry will be rolled out in phases. The first phase is expected to focus on card-based contactless payments, while a later phase could include integration with the UPI, which would require a separate and more complex set of regulatory approvals.
UPI Integration Remains A Longer-Term Goal
It is reported that Apple Pay is most unlikely to apply for a third-party application provider (TPAP) licence for UPI in the initial phase, as the approval process involves a distinct regulatory framework and a payments architecture that differs fundamentally from card-based systems.
Apple Pay is operated by Apple Payments Services, a subsidiary of Apple. Once launched, users will be able to store their credit and debit cards on Apple Wallet and make contactless payments by tapping their Apple devices on the transaction machines. Since this feature is not rolled out yet, people wouldn’t be able to use this feature or function it.
As Apple gets closer to launching this, the pricing and structure fees with partners are yet to be announced. The success of this is hinged on factors like adaptibility on the software and transition to Apple-supported devices.
Given that UPI payments weigh heavily in the Indian transactions, the US-based tech giant could also gain traction and momentum in the mid and lower segments of users.
