Apple is planning to launch Apple Pay services in India by October 2026, following the pursuit of necessary regulatory approvals. The move comes as the Unified Payments Interface (UPI) faces scrutiny over new Merchant Discount Rate (MDR) rules, and Apple Pay could offer a competitive alternative for Indian consumers.
Direct Bank Linkage and NFC Technology
Unlike UPI, which typically relies on QR codes or Virtual Payment Addresses (VPAs) linked directly to bank accounts, Apple Pay utilises Near-Field Communication (NFC) technology. This allows for contactless payments by transmitting an encrypted token of a user’s credit or debit card to payment terminals, according to the report. Apple Pay does not require a UPI interface and can link directly to a user’s bank account or card.
Bank Partnerships in the Works
Apple is reportedly collaborating with several major Indian banks to facilitate the launch. Mark Gurman at Bloomberg reported that Apple is in discussions with Axis Bank, HDFC Bank, and ICICI Bank to establish partnerships. Initial indications suggest Axis Bank may be the first partner for the rollout.
Security and Device Compatibility
Apple Pay enhances security through card tokenisation, ensuring that actual credit or debit card numbers are never stored on the device or shared with merchants. Payments are further secured using Face ID, Touch ID, or passcode authentication. The service will be compatible with a range of Apple devices, including iPhones, Apple Watches, iPads, and Macs, once a debit or credit card is added to Apple Wallet.
While other NFC-based payment options exist in India, such as Google Pay, Apple Pay distinguishes itself by allowing direct connection to a user’s bank, a feature not currently available with competing apps.
