Apple Pay Set for India Launch With Axis Bank, Visa and Mastercard
Apple Pay is poised to launch in India with Axis Bank cards, but UPI dominance, a 20-basis-point fee and uneven terminal support limit its India debut.
Summary
Apple is set to launch Apple Pay in India on Tuesday, September 29, 2026, with Axis Bank as its initial banking partner, although none of the companies has confirmed the rollout and an earlier timeline pointed to October. Eligible Axis Bank credit cards on Visa and Mastercard, but not RuPay, can be added to Apple Wallet for online and contactless payments. Service will be limited to enabled merchants and terminals, and the same card may work through one independent provider but fail where an acquiring bank lacks support.
Unlike the Unified Payments Interface, which handles most Indian digital payments through instant bank transfers, Apple Pay is card-based and requires integrations with each issuer and infrastructure provider. Apple is seeking about 20 basis points per transaction from a payments-layer margin of roughly 40 to 50 basis points. HDFC Bank, ICICI Bank and SBI Card are not expected to participate initially while commercial negotiations continue. Wider adoption therefore depends on additional bank agreements and payment-terminal upgrades.
Apple Pay initially targets a smaller card market but could attract affluent iPhone users with premium credit cards and generate transaction revenue for Apple. The launch extends Apple's expansion in Indian sales, manufacturing and retail. Counterpoint Research put Apple at 28% of smartphone market value in 2025, up from 23% a year earlier. India produces about one quarter of global iPhones, potentially rising to 30% to 35% within five years, according to an Indian government official.
Positives
- Eligible Axis Bank Visa and Mastercard credit cards will support Apple Wallet, online purchases and contactless payments from the initial rollout.
- Apple held 28% of India's smartphone market by value in 2025, rising from 23% a year earlier.
- India produces about one quarter of global iPhones, with its share potentially reaching 30% to 35% within five years.
- Affluent iPhone owners using premium credit cards give Apple Pay a potentially valuable audience despite its limited initial reach.
Risks & concerns
- RuPay cards, HDFC Bank, ICICI Bank and SBI Card will not support Apple Pay at launch.
- Apple's requested fee of about 20 basis points is substantial against payments-layer margins of roughly 40 to 50 basis points.
- Acceptance may vary between terminals because acquiring banks and independent payment providers must enable Apple Pay separately.
- UPI handles most Indian digital payments, leaving Apple Pay to compete within a much smaller card-based market.
- Apple, Axis Bank, HDFC Bank, ICICI Bank and SBI Card have not confirmed the planned September 29 launch.