Apple Pay to Launch in India after 12 Years, Regulatory Approvals Underway

Tech giant Apple is set to launch its payment service, Apple Pay, in India more than a decade after the service began operations. The iPhone-maker is currently holding discussions with global card networks including Mastercard and Visa and seeking regulatory approval from the Indian authorities for a smooth rollout of the payment gateway.

The payment gateway is aiming for an initial rollout by the end of this year, while Apple is also negotiating fee structures with card issuers for access to the services, according to Business Standard.

Notably, Apple released the payment services in 2014 and it is already operational in 89 global markets. However it wasn’t available to Indian iPhone or other Apple-device users.

Apple Pay is operated by the tech giant's arm, Apple Payments Services, and works exclusively on Apple devices like iPhones, Apple Watches, iPads and Macs. Once launched in India, users will be able to store their credit and debit cards on Apple Wallet and make contactless payments by tapping their Apple devices on point-of-sale (PoS) terminals using near-field communication (NFC). Currently, Indian-issued cards cannot be added to Apple Wallet.

The report added that the service's India entry will be rolled out in phases with the first phase expected to focus on card-based contactless payments. The latter phase could include integration with the Unified Payments Interface (UPI), which would require a separate and more complex set of regulatory approvals.

Additionally, Apple Pay is unlikely to apply for a TPAP (third-party application provider) licence for UPI in the initial phase as the approval process involves a distinct regulatory framework and a payments architecture that differs fundamentally from card-based systems.

The iphone-maker's move comes at a time when rivals like Samsung are already operating their own digital payments platform in the country. Samsung runs the Samsung Wallet, which consolidates payments, cards and other services within Samsung’s device ecosystem and has recently gained momentum with UPI-based integration.

This also comes against the backdrop of UPI's significant use in everyday transactions in India. It aigns with the rapid expansion of electronic transactions in the country across cards, digital wallets, prepaid payment instruments (PPIs) and UPI.