Apple's digital payment service, Apple Pay, could finally make its debut in India. According to reports, the service is expected to launch in the country around October, giving iPhone and iPad users a new way to make contactless card payments.
The initial rollout is reportedly expected to support credit cards operating on Visa and Mastercard networks. Users could add their eligible cards to Apple Wallet and use their devices at compatible point-of-sale terminals.
However, there is one major limitation at launch: UPI payments are reportedly not expected to be supported.
How will Apple Pay work in India?
Once Apple Pay becomes available, users will be able to add eligible credit cards to the Apple Wallet app on their iPhone or compatible Apple devices.
At a store, instead of taking out the physical card, users can bring their iPhone or other supported device close to a compatible POS terminal. The payment will be processed using NFC, or near-field communication technology.
The process is designed to make contactless payments quick and convenient. Apple Pay already uses this method in several international markets.
Initially, Visa and Mastercard cards are expected to be supported, although the availability of specific cards will depend on participating banks and Apple's final rollout plans.
UPI users may have to wait
While Apple Pay could make card payments easier, Indian users may not get UPI support when the service launches.
For Apple Pay to support UPI transactions, Apple would need to work with the National Payments Corporation of India and participating banking partners to enable the necessary payment infrastructure.
This means users may initially be able to use Apple Pay for eligible card transactions but will still need existing UPI apps and services for UPI payments.
Reports suggest Apple could complete preparations for the India launch by September or October, although the company has not officially confirmed the reported launch timeline.
Apple could earn from every transaction
Apple Pay's entry into India's large digital-payment market could also create a new source of transaction revenue for Apple.
According to reports, Apple has been discussing the commercial terms of card transactions with banks. The company was reportedly seeking a share of around 15 to 20 basis points per transaction, while some large card-issuing banks were pushing for a lower fee of around 10 basis points.
One basis point is equal to 0.01%.
If Apple Pay launches successfully, payment companies believe its presence could encourage more contactless credit-card transactions among iPhone users.
A new payment option for iPhone users
India already has a highly developed digital-payment ecosystem, particularly because of the widespread use of UPI. Apple's reported approach appears to be different at the beginning, focusing primarily on contactless card payments rather than replacing UPI.
If the service launches as expected, iPhone users could soon have another convenient way to pay at compatible stores simply by tapping their device on a payment terminal.
