How Should Apple Pay Approach India?

September 2026

Fintech & Payments

Michael Greenwood

Principal Analyst

On September 18th, Reuters reported that Apple is on the verge of launching Apple Pay in India; one of the last major economies where it is not available. The report claims that this launch will be in collaboration with Axis Bank’s credit cards; the country’s fourth-largest credit card issuer. It also reported that while it will launch with this single banking partner, Apple is still in talks with HDFC Bank and ICIC Bank; two of India’s largest banks, in order to expand coverage once it has launched. 

The report says that Apple plans to add lenders over time through direct bank-by-bank deals. This move comes on the back of Apple’s share of the smartphone market increased to 7.2% in the last five years. It also follows the Reserve Bank of India (RBI) allowing biometric authentication for card payments, with biometrics being a key part of Apple Pay’s offering. 

The timing of this move from Apple is not coincidental. The rapid growth of its handsets being used combined with the enabling of biometric authentication makes this the best opportunity Apple has yet had to try and enter the market. An important factor to consider is what would be considered a success for Apple. In the US, Apple Pay holds a significant share of the digital wallet market, with some estimates placing it at over 50%. This is not a realistic aim in India where the mobile payments space is far more developed than it was in the US when Apple launched there. 

The Competition

India’s mobile payment space is dominated by apps linked to the Unified Payment Interface (UPI). UPI is an instant payment system that facilitates transfers between bank accounts. It facilitates P2P transfers, bill payment, in-store, and online purchases. For in-store payments, the system utilises QR codes to initiate the transaction; not requiring the user to enter payment details at checkout. The UPI system works as follows: 

• User Registration: The user registers with an UPI-enabled app, such as PhonePe, Google Pay or Paytm. The user links its bank account, and creates a unique virtual payment address (VPA) which serves as its UPI ID.
• Transaction Initiation: The user initiates the payment by selecting the recipient’s VPA from their history, entering a new UPI ID, or scanning a merchant’s QR code.
• Authentication: To authenticate a transaction, the user must enter its UPI PIN, which is a six-digit code created at registration.
• Transaction Processing: Once the user has entered its UPI PIN, the app sends a payment request to the UPI server. The server verifies the request, and processes it by communicating with the user’s and the recipient’s bank.
• Confirmation: Once both banks confirm the transaction, funds are instantly transferred from the user’s account to the recipient’s account. The user will receive a notification as to the success or failure of the transaction.
• Settlement: The UPI system ensures funds are settled between banks within a few hours, however the transfer is represented in the user’s account instantly.

While UPI-linked apps will be the primary challenge, it will not be the only one. Cash remains the primary means of purchasing for a large segment of the population. The persistent use of cash is primarily found among microbusinesses, rural communities, and the older generations. It also remains the primary means of transacting among India’s unbanked population. It is highly unlikely that Apple will be able to make inroads with these demographics using Apple Pay. Due to the need to link to a bank account or card, Apple Pay would have to rely on prepaid cards to enable access. These groups are also less likely to be using an Apple handset; reducing the incentive to adopt Apple Pay’s services.

Card payments themselves remain a relatively small payment method. While in many urban areas, acceptance is strong, UPI has wider acceptance. It is also the case that UPI is used for P2P transactions, so the majority of consumers are familiar with the service from that; making them more comfortable using it for in-store transactions. 

How Should Apple Approach India

The most important question is how Apple is going to try and drive adoption of Apple Pay. In the majority of markets it currently operates in, contactless card payments were established before Apple Pay was launched, and its value proposition making that process more convenient and secure. In these markets, both the acceptance infrastructure and consumer habits were primed for an offering such as Apple Pay, this is not the case in India. 

Another obstruction to mass adoption in India is the lower ownership of its handsets. The majority of Apple Pay customers access it on an Apple device, with Apple Pay’s best performing markets being the ones with highest Apple device adoption. 

Apple Pay operates in markets with lower card usage, such as Malaysia. In these markets, Apple Pay remains a niche payment method; primarily used by wealthier urban consumers and international travellers. This is a viable strategy in India. Due to its sheer size, capturing a smaller proportion of the country’s wealthy offers the potential of significant revenue. This segment offers a disproportionate transaction value to its size of the population. Furthermore, it will benefit from the growth of the Indian middle class; presenting sustained long-term growth opportunities. It is also the case that as India’s economy continues growing, it will become an increasingly important location for international business travel; presenting long-term growth opportunities for Apple. 

This is the approach Juniper Research would recommend taking, as a card-linked wallet does not offer a population with lower card adoption a meaningful upgrade on the existing UPI. Apple must utilise its international brand image to create a perception of Apple Pay as a high-end service. This will incentivise retailers to pursue acceptance as they will want to accept high-value customers, and will desire the brand association. It will also incentivise consumers to use Apple Pay over comparable options as they will want to be associated with a high-end service.