Apple Pay launches its services in India

Apple, a leader in the technology world, is preparing to officially launch its Apple Pay payment system in India, the world's most populous country. According to TechCrunch, the service will initially be offered in a limited capacity in partnership with Axis Bank. Entering this massive market, which has been sidelined for years, is considered a significant strategic step for Apple. This is reported by Techcrunch.com .

It is reported that the implementation process will have certain limitations in the initial phase. Specifically, Apple Pay will only support Axis Bank cards connected to Visa and Mastercard payment systems, while India's local RuPay network is not included in this list at the start. Additionally, payments will only be possible through specially adapted points of sale and terminals.

Market conditions and specific features

India's digital payment market differs significantly from the US and other card-based economies. The state-supported UPI (Unified Payments Interface) system dominates the country, and consumers are accustomed to making instant payments directly via QR codes without bank cards. Apple Pay relies on cards and requires integration with each issuer and infrastructure provider, which complicates widespread adoption.

Experts note that Apple's commercial terms have become one of the main obstacles in negotiations with India's major banks. According to sources, Apple is requesting a commission fee of approximately 20 basis points per transaction. This represents a significant portion of the total 40–50 basis point margin in the payment layer, and due to these financial terms, major financial institutions such as HDFC Bank, ICICI Bank, and SBI Card are not expected to support the system in the initial phase.

Prospects and revenue sources

Although the UPI system dominates the market, Apple Pay could find its place among the growing number of iPhone users in the country. Typically, Apple device users belong to a high-income bracket and are more likely to use reward cards. This makes it difficult for banks to ignore this service.

Even if Apple Pay remains a niche service initially, its economic model is expected to make the Indian market significantly profitable for Apple. The commission fee from transactions provides the company with an opportunity to generate additional revenue from its growing user base in the country. In the initial phase, Axis Bank customers will be able to add their credit cards to the Wallet app to make online purchases and contactless payments.