Apple is preparing to introduce its digital payment service -- Apple Pay -- in India, as the company holds discussions with leading Indian banks and global card networks. According to a report, Apple is in talks with ICICI Bank, HDFC Bank, and Axis Bank, and may roll out the service in the country by mid-2026. The company is also discussing its plans with payment networks Mastercard and Visa Inc.
India’s digital payments market is already crowded with major global players like Google Pay, Walmart-controlled PhonePe, and Amazon.com, alongside strong domestic competitors like Paytm.
However, India’s payments ecosystem is dominated by the Unified Payments Interface (UPI), which allows customers to instantly transfer money and pay bills without transaction charges. The core difference between Apple Pay and UPI lies in their structure and functionality. Apple Pay is a hardware-integrated digital wallet, while UPI is a bank-to-bank transfer protocol. In simple terms, UPI-based apps such as PhonePe or Google Pay allow users to scan QR codes to transfer money directly between bank accounts. Apple Pay, by contrast, uses near-field communication (NFC) technology to transform an iPhone into a contactless credit or debit card, enabling users to tap to pay at retail terminals without opening an app. Security mechanisms also differ significantly -- UPI requires a manual four- or six-digit PIN for each transaction, whereas Apple Pay relies on biometric authentication such as Face ID or Touch ID for instant authorization.
With more than 750 million smartphone users and strong government backing for digital payments, India has become one of the world’s fastest-growing digital payments markets. This presents a significant opportunity for Apple to expand its services revenue in the region. Given the widespread adoption of mobile payments, the launch of Apple Pay could also drive demand for Apple’s hardware ecosystem, as the feature is integrated into Apple Watches, iPhones, iPads, and Macs.
Apple has steadily increased its market share to around 10% of India’s smartphone sales, leaving considerable room for further growth. Additionally, the company is strengthening India’s role as a key manufacturing hub, exporting iPhones to the United States as part of its strategy to diversify production beyond China.