How Apple Pay targets the lucrative card payments space

Apple Pay launches in India after 12 years, offering contactless payments for Apple devices via Axis Bank cards. Despite no UPI support, it targets loyal Apple users to enter India’s digital payments market.

Written by Banasree Purkayastha

Updated: October 1, 2026 08:06 IST

Apple Pay logo is seen in this illustration. (Photo source: Reuters)

After a 12-year wait, Apple Pay is finally in India, a market heavily skewed in favour of Android phones. It also does not support UPI payments. But it does have a captive market of loyal Apple device owners. Banasree Purkayastha examines whether this can help it make inroads into India’s massive digital payments ecosystem

l What exactly has Apple launched in India?

APPLE HAS LAUNCHED its contactless payments service — Apple Pay— in India, allowing users to make payments through iPhone, iPad and Apple Watch. Support for Mac is coming soon. As of now, it is available for Axis Bank-issued Visa and Mastercard credit cards, with Apple planning to add support for more banks over time. According to TechCrunch, talks are on with HDFC Bank, SBI Card and ICICI Bank to get them on board.

The launch brings Apple customers an easy, secure, and private way to pay in stores, in apps, and on the web at retailers of all sizes — all without the need to type in PINs or use OTPs at checkout. Apple Pay will work at both online and offline merchants that accept NFC-based contactless card payments. The payments service requires iPhone XR or later with iOS 18 or later. In the case of Apple Watch, it starts with Series 6 or later running watchOS 11 or later. Apple Watch must be paired with iPhone XR or later.

Apple Pay does not support UPI payments as it is card-based. RuPay cards also don’t work on it at this point in time.

l How does it protect card and transaction data?

SECURITY AND PRIVACY are at the core of every Apple, and it’s the same with Apple Pay. When customers use a card with Apple Pay, the actual card numbers are not stored on the device or on Apple servers, nor are they shared by Apple with the merchant. Instead, a unique device account number is assigned, encrypted, and securely stored in the Secure Element, an industry-standard certified chip designed to store the payment information safely on the device. The transactions stay between the user, the merchant, and their bank or card issuer, and Apple does not retain transaction information that can be tied back to the user. If a user’s iPhone is lost or stolen, they can use the Find My app to quickly locate, lock, or suspend payments from that device.

Apple has worked closely with payment service providers (PSPs) — like Cashfree, JusPay, Mswipe, Paytm, PayU, Pine Labs, Razorpay, Worldline, and more — to bring Apple Pay to their merchant networks in India.

l Can Apple Pay attract users without UPI?

APPLE PAY’S LAUNCH in India comes barely a fortnight before the UPI MDR kicks in on transactions above Rs 2,000 . The MDR on credit card transactions is around 1.5-2.5%. Most iPhone users are likely to have an UPI app already on their device. But, Apple’s target customer group are typically affluent and who are likely to use premium credit cards. India’s credit card market has been expanding, and outstanding credit card balances touched `3.1 lakh crore in March 2026, with the total number of cards in circulation at 107 million. The first set of Apple Pay adopters in India are likely to be people who frequently travel abroad and are familiar with the payments service. Though the smartphone market is dominated by Android phones, 14.4 million iPhones were sold in 2025, with sales growing 16%. Its share by volume is expected to touch 10% in 2026, as per Counterpoint Research. The launch gives it another way to monetise this growing base of iPhone users.