Apple Pay set to launch in India with Axis Bank today, sources say

Apple Pay's entry into India is set to navigate a payments landscape dominated by the Unified Payments Interface (UPI), a state-backed system for direct bank-to-bank transfers. Unlike UPI, Apple Pay relies on card networks and requires integration with individual issuers and payment providers. This structural difference means Apple Pay will initially target the smaller card payments market rather than competing directly with UPI's widespread QR code-based system.

A key point of contention for broader adoption appears to be Apple's commercial terms, with the company reportedly seeking a fee of about 20 basis points on transactions. This fee is a notable portion of the typical 40 to 50 basis points margin in the payments layer, leading some of India's largest banks, including HDFC Bank, ICICI Bank, and SBI Card, to reportedly hold off on supporting the service at launch as negotiations continue.

Despite the initial limitations and commercial hurdles, Apple Pay could find traction among India's growing base of affluent iPhone users, who are more likely to use premium credit cards. Even if the service remains niche compared to UPI, the transaction fees could provide Apple with an additional revenue stream from its expanding user base in India, a country increasingly central to its global business strategy.