Apple Pay May Enter India Through Cards, Not QR Codes

Apple is reportedly exploring the launch of Apple Pay in India by late 2026, marking a calculated step into one of the world’s most competitive digital payments markets. According to a Business Standard report, the iPhone maker is in discussions with global card networks, including Visa and Mastercard, while also preparing to seek regulatory approvals for the rollout.

Unlike the QR-code-led payment experience that dominates India today, Apple Pay’s entry is expected to begin with card-based contactless payments. In its first phase, users would be able to add their debit or credit cards to Apple Wallet and make payments by tapping an iPhone or Apple Watch on NFC-enabled point-of-sale machines, a capability currently unavailable for India-issued cards.

This phased approach reflects Apple’s preference for a controlled rollout rather than an immediate head-on clash with India’s UPI ecosystem.

Why Apple Is Starting With Cards Instead of UPI

UPI remains the backbone of India’s digital payments, but Apple appears to be taking a cautious route. The report notes that UPI support may come later, as it requires a different set of regulatory approvals. Apple is also unlikely to apply for a UPI third-party app licence in the initial stages, given the added regulatory complexity involved.

By starting with card-based payments, Apple can leverage its existing global relationships with card networks while aligning with hardware-driven use cases such as tap-to-pay on premium devices. This positions Apple Pay less as a mass-market wallet and more as a value-added service for its installed base.

For Indian users, this would mean a payments experience closely integrated with Apple’s ecosystem rather than a replacement for existing UPI apps.

Payments as a Lever for Services Growth in India

The timing of the Apple Pay discussions is notable. Apple recorded its highest-ever iPhone shipments in India in 2025, ending the year with a market share of around 9–10%. With a growing base of users, Apple is increasingly focused on monetising services, not just hardware.

In FY25, Apple India’s net profit rose 16% year-on-year to INR 3,196 crore, while operating revenue grew 19% to INR 79,060.5 crore. Although hardware continued to drive the bulk of revenue, services contributed INR 4,380 crore, including offerings such as AppleCare and technical support.

Apple Pay could deepen engagement within this ecosystem, encouraging users to rely more heavily on Apple’s integrated services across payments, subscriptions, and devices.

Apple is also reported to be in discussions with card issuers on transaction fees associated with accessing its payments system, an issue that could influence adoption among banks and financial institutions.

The broader challenge will be positioning Apple Pay in a market where UPI-led apps dominate daily transactions and are deeply embedded in consumer behaviour. While Apple Pay may initially serve a niche audience, any future UPI integration would place Apple more directly within India’s mainstream digital payments infrastructure.

For now, Apple’s strategy appears incremental: build familiarity through card-based payments, strengthen services revenue, and evaluate deeper participation in India’s payments stack over time.