In a major relief for iPhone, Mac and iPad ecosystem users in India, Apple has reportedly restarted support for credit and debit card payments for App Store purchases and iCloud subscriptions. This is a huge development, considering the move comes after a five-year hiatus caused by RBI regulatory hurdles over data storage and transaction handling.
The feature is currently being tested in real-time with a select group of users, reported Moneycontrol, quoting its sources. Once found fit for the masses, it is expected to undergo a gradual rollout, reaching the wider Indian user base over the next few months.
Apple cleverly navigates RBI’s data localisation laws
To bring back card payments without violating local laws, Apple had to overhaul how it handles Indian financial data.
Globally, Apple still backs up tokenised payment data across localised servers situated in the United States, Denmark (for the European Union), and China. However, to strictly comply with the RBI’s data localisation rules, Apple will not mirror or replicate tokenised payment data for Indian users on these overseas servers.
Since Apple does not operate its own data centres within India, and reportedly has no immediate plans to build one, the company has collaborated closely with authorised card networks and domestic banks. By routing the payment mechanics entirely through India-compliant localised systems run by these card networks, Apple has successfully managed to align with the regulatory framework.
Users can check their Apple Account > Payment & Shipping settings over the coming weeks to see if the option to add a credit or debit card has been restored to their specific devices.
But why did Apple pause card payments?
Apple completely halted credit and debit card processing for Indian users in 2021. The sudden stoppage was triggered by the Reserve Bank of India’s (RBI) stringent card tokenisation mandate and data localisation directives.
Under the RBI framework, merchants and technology platforms are prohibited from storing customers’ actual card details (such as card numbers and expiry dates) on their servers. Instead, transactions must be processed using a token — a unique alternative code generated by authorised card networks. Furthermore, the central bank mandated that all tokenised payment data must be securely stored exclusively within India.
Because Apple’s global infrastructure relies on processing and storing payment data in international data hubs, the company was forced to remove card support entirely. For the past five years, Indian consumers trying to renew iCloud storage, purchase apps, or pay for subscriptions like Apple Music were restricted to using Unified Payments Interface (UPI), Net Banking, or pre-purchased Apple Gift Cards.
What about Apple Pay in India?
While the return of credit and debit card options for digital purchases marks a significant milestone, it also throws light on Apple’s broader payment ambitions in the country.
Apple has reportedly been in ongoing discussions to officially launch its contactless mobile payment service, Apple Pay, in India. However, the launch remains stalled due to multi-layered roadblocks.
Local banks and Apple are engaged in tough negotiations regarding transaction commissions. However, the Indian government and regulatory bodies have delayed approvals, partly over concerns regarding data sovereignty and the potential impact Apple could have on India’s heavily UPI-dominant domestic payment landscape.