Apple has announced the launch of its digital payment system, Apple Pay, in India. The move is part of the company's strategy to tap into the lucrative Indian market, which is the most populous country in the world. Apple Pay will allow users to make payments using their iPhone or Apple Watch, with the service supported by Axis Bank, India's third-largest private bank.
The Indian digital payments market is currently dominated by the Unified Payments Interface (UPI), which is supported by the government. UPI is the largest real-time payment system in the world in terms of volume, according to the International Monetary Fund (IMF). The market is currently dominated by apps such as PhonePe, Google Pay, and Paytm. Apple Pay's entry into the market is expected to increase competition and offer users more payment options.
To access Apple Pay, customers of Axis Bank will need to register their credit cards in the Apple Wallet app. They can then use their iPhone or Apple Watch to make payments at thousands of merchants, both online and in-store, across India. Jennifer Bailey, Vice President of Apple Pay and Apple Wallet, said the launch of Apple Pay in India is exciting, given the country's dynamic and digitally-savvy population.
Despite the popularity of Android smartphones in India, iPhone sales have been increasing in recent years, particularly among affluent consumers. In 2025, Apple reportedly shipped over 14 million iPhones in India, according to TechCrunch. The company has also been gradually shifting some of its iPhone assembly to India, reducing its dependence on China. India now accounts for around 25% of global iPhone production.
The launch of Apple Pay in India coincides with a new government policy allowing banks and merchants to charge commissions on UPI transactions made by businesses. The move, announced earlier this month, aims to enable greater investment in digital infrastructure and innovation. However, critics argue that the charges could discourage the use of digital payments, as merchants may pass on the costs to customers.
Apple Pay's entry into the Indian market is expected to have a significant impact on the country's digital payments landscape. With its user-friendly interface and seamless payment experience, Apple Pay could attract a large number of users in India. The service will also provide merchants with a secure and convenient payment solution, which could help to increase sales and reduce transaction costs.
The Indian government has been promoting digital payments in recent years, with a focus on increasing financial inclusion and reducing the use of cash. The launch of Apple Pay is a significant development in this effort, and it will be interesting to see how the service is received by users and merchants in India. Key players in the Indian digital payments market will need to adapt to the new competition and innovate to stay ahead.
Key points
- Apple Pay has partnered with Axis Bank to offer digital payments to millions of users in India.
- The Indian digital payments market is currently dominated by UPI, PhonePe, Google Pay, and Paytm.
- The launch of Apple Pay coincides with a new government policy allowing commissions on UPI transactions made by businesses.
