Apple Pay will launch in India by October 2026, initially without support for UPI transactions. The rollout, limited to Visa and Mastercard credit cards, creates a direct clash with India's ubiquitous digital payments. Apple's requested 15-20 basis point interchange fee is the core sticking point with major Indian banks.
How We Got Here
Apple paused card payments for App Store purchases in India for four years starting 2022 due to RBI's stricter recurring transaction rules. The company just resumed accepting Visa and Mastercard for Apple Account purchases in July 2026, signaling its intent to comply with local regulations.
The Numbers
- Apple needs NPCI approval and a sponsor bank partnership to enable UPI transactions, neither of which are secured for launch.
- Initial Apple Pay usage will be restricted to NFC-based physical card payments and online card transactions.
- Indian banks, including HDFC, ICICI, and Axis, have offered Apple about 10 basis points for interchange fees, below Apple's 15-20 bps request.
- Pine Labs CEO Amrish Rau expects Apple Pay's entry before the end of 2026, predicting it could boost credit card usage by 10-15%.
- The proposed fee structure draws from banks' existing interchange revenue, not from new charges to customers or merchants.
What Happens Next
🇮🇳 Why This Matters for India
For credit card product managers in Bangalore and Mumbai, Apple Pay's entry signals a direct challenge to existing loyalty programs and user acquisition strategies.
The Take
Apple’s gambit to push credit cards over UPI is a high-stakes bet, banking on its premium user base to tolerate inconvenience. UPI's sheer dominance means Apple will struggle for mainstream adoption until it finds a way to integrate India's default payment rail.
Source:
MediaNama ↗