Apple Pay is expected to launch in India in October 2026, initially supporting contactless payments through Visa and Mastercard cards. iPhone and Apple Watch users will be able to make payments at NFC-enabled terminals.
However, UPI is unlikely to be part of the first phase. Apple and NPCI are still working through differences over biometric authentication, NFC access, and the commercial terms for the service.
Apple Pay India Launch To Start With Cards
Apple has reportedly held talks with HDFC Bank, ICICI Bank and Axis Bank to provision cards for the launch. Users are expected to add eligible credit and debit cards to Apple Wallet and make contactless payments through compatible devices.
The card-first strategy puts Apple Pay in a limited segment of India’s payments market. UPI has become the preferred payment method for everyday transactions, while cards are increasingly concentrated around premium consumers and larger retail outlets.
UPI integration faces additional technical and regulatory hurdles. Apple relies on Face ID and Touch ID through its secure device architecture, while NPCI requires authentication processes linked to India’s wider digital payments framework.
NFC access is another issue. Apple traditionally keeps iPhone NFC functionality closely tied to Apple Pay, while India’s payment ecosystem is built around interoperability between banks, wallets and payment applications.
Commercial terms could also delay a wider rollout. Apple has reportedly sought a commission of around 20 basis points from partner banks, while Indian banks remain cautious about additional payment costs in a market where UPI operates with zero merchant discount rates.
Apple Pay Faces a UPI-Dominated Market
The bigger challenge for Apple is India’s payment behaviour. UPI processed 24,162 crore transactions worth Rs 314 lakh crore in fiscal year 2025 to 26, making it the dominant digital payment method in the country.
QR payments also have a major distribution advantage. India’s extensive QR network reaches tier 2 and tier 3 cities, while NFC terminals remain concentrated in premium retail, airports, hotels and malls.
Apple’s advantage is its premium customer base. The company shipped around 14 million iPhones in India during 2025, giving Apple access to consumers who are more likely to use credit cards and spend at premium merchants.
This means the initial Apple Pay opportunity is less about replacing UPI and more about making card payments easier for iPhone users. Its success will depend on how frequently these users choose contactless cards over QR-based UPI payments.
The bigger opportunity comes with UPI integration. If Apple and NPCI resolve the authentication and regulatory issues, Face ID-enabled UPI payments could give Apple Pay a significantly stronger proposition in India.
For now, Apple Pay’s October launch will be a card payment play rather than a direct UPI challenge. The next phase will depend on Apple’s negotiations with NPCI, its approach to NFC access, and the commercial terms agreed with Indian banks.
FAQs
- When will Apple Pay launch in India?
Apple Pay is expected to launch in India in October 2026, starting with contactless card payments.
- Will Apple Pay support UPI in India?
UPI support is not expected at launch. Apple and NPCI are still working through technical and regulatory issues.
- Will Apple Pay work with Visa and Mastercard in India?
Yes, the initial Apple Pay India launch is expected to support eligible Visa and Mastercard credit and debit cards.
- Can I use Apple Pay on an iPhone in India?
Yes, compatible iPhone users are expected to use Apple Pay for contactless payments at supported NFC-enabled terminals.
- Can Apple Pay be used on Apple Watch in India?
Yes, Apple Watch is expected to support Apple Pay for contactless card payments at compatible payment terminals.
