Apple Pay Launches in India with Axis Bank as First Partner

Apple is scheduled to roll out Apple Pay in India on Tuesday, marking the company’s entry into the world’s most populous nation after years of observation. According to individuals familiar with the matter, Axis Bank will serve as the initial banking partner for the launch.

The debut will be restricted, supporting only eligible Axis Bank cards issued on the Visa and Mastercard networks. Cards on the domestic RuPay network will not be included in the initial release. Acceptance will also be limited to merchants and payment terminals that have been specifically enabled for the service.

This card-based approach contrasts sharply with India’s Unified Payments Interface (UPI), a state-backed system that facilitates instant bank-to-bank transfers and dominates the digital payments landscape. Because Apple Pay relies on individual issuers and payment infrastructure providers to integrate with its platform, a broad rollout is more complex. Furthermore, commercial terms have become a hurdle; reports indicate Apple is seeking a fee of approximately 20 basis points on transactions, which cuts into the typical 40 to 50 basis points margin found in the payments layer.

Major lenders such as HDFC Bank, ICICI Bank, and SBI Card are not expected to support Apple Pay at launch, as negotiations over these commercial terms are still underway. Representatives for Apple, Axis Bank, HDFC Bank, ICICI Bank, and SBI Card did not respond to requests for comment.

Despite the dominance of UPI, Apple Pay may find an audience among India’s growing base of iPhone users, who tend to be more affluent and are more likely to utilize premium credit cards. This demographic could make the service difficult for banks to overlook. Even if the service remains niche, the transaction fees provide Apple with an additional revenue stream from its expanding user base in the country.

At launch, eligible Axis Bank customers will be able to add their credit cards to the Wallet app for online purchases and contactless payments at supported terminals. However, acceptance may be inconsistent; a transaction might succeed at a terminal operated by an independent payments provider that has enabled the service, yet fail at another terminal where the acquiring bank has not.

The launch complements Apple’s broader expansion in India, where it has been increasing iPhone sales, local manufacturing, and retail presence. In 2025, Apple captured 28% of India’s smartphone market by value, up from 23% the previous year, according to Counterpoint Research. India currently accounts for roughly a quarter of global iPhone production, with projections suggesting this share could rise to between 30% and 35% over the next five years.