New Delhi — Apple Pay has launched in India, expanding the company’s services ecosystem in a market where the Unified Payments Interface accounts for more than 80% of digital payment volume.
The service initially supports Visa and Mastercard credit cards issued by Axis Bank on iPhone, iPad and Apple Watch, with support for Mac expected to follow.
Industry analysts said the launch gives Apple an opportunity to make card payments more seamless for its existing customer base, although UPI is expected to remain the dominant payment method for everyday transactions.
Prabhu Ram, vice president of the Industry Research Group at CyberMedia Research, said Apple Pay’s arrival marks a further integration of Apple’s hardware, software and services businesses in India.
Axis Bank, India’s fourth-largest credit card issuer, has about 16.23 million active credit cards, giving Apple Pay a significant initial user base. India’s overall credit card market has surpassed 122 million cards, while contactless payments are also expanding.
Ram said Apple Pay is unlikely to displace UPI, but could strengthen Apple’s ecosystem by making card transactions more convenient on its devices.
Tarun Pathak, research director at Counterpoint Research, said the service could encourage greater credit card usage among Apple users by reducing the need for one-time passwords during checkout.
He said the pace at which other major banks join the platform will be an important factor in determining how widely Apple Pay can expand in India.
Credit card usage and adoption of near-field communication technology are growing at double-digit rates, while India’s credit card base has nearly doubled since the COVID-19 pandemic, Pathak said.
Axis Bank customers with eligible Visa and Mastercard credit cards can add them to Apple Pay and use the service at participating stores and online merchants across India, as well as at locations that accept NFC payments.
Apple said the service allows customers to make payments in stores, apps and on the web without entering card PINs or one-time passwords at checkout, while providing security and privacy protections built into the platform. (Source: IANS)
