Apple Pay Finally Launches in India: Axis Bank Cards Supported at Launch

Apple Pay has finally launched in India, initially supporting Axis Bank Visa and Mastercard credit cards. Here’s how Apple Pay works, supported devices, security features, merchants, and how it compares with UPI.

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It is official that Apple Pay has landed in India, introducing Apple’s contactless payment service to the Indian market years after its debut in multiple other markets around the world. Initially, the service debuts in collaboration with one banking partner only, Axis Bank, and lets eligible Visa and Mastercard credit cardholders use their iPhones and Apple Watches for contactless payments, which do not require PINs or OTPs during the checkout process.

For Apple, the introduction of its contactless payment service in India is a crucial step to expand its portfolio of financial services in the Indian market, but unfortunately, the extent of its availability turns out to be much more restrained than many users hoped for. Only Axis Bank-issued Visa and Mastercard credit cards are eligible for use within Apple Pay.

How Apple Pay Works in India

In case of Axis Bank users that are supported by the bank, adding the Apple Pay service is quite easy. There are two ways how a user may do this – either by using the most recent version of the Axis Bank mobile app or adding the card directly into the wallet on the iPhone via the Wallet app.

After the card is linked and confirmed, payments could be made in the same way as in any other country where Apple Pay service is available, by using the contactless terminals that accept such payments. In order to pay on an iPhone, users should double-click the side button, enter the passcode or use Face ID/Touch ID to verify identity and then simply bring the phone close to the contactless terminal.

Similarly, Apple Watch users may authenticate and place the watch near the reader.

Apple Pay Will Be Available at Millions of Merchants

According to Apple, Apple Pay will be accepted by millions of merchant outlets across India at the time of the launch of the payment app. Amongst others, the list comprises Apple’s retail stores, along with various services and retailers like Blinkit, Chaayos, Croma, Ixigo, Tata 1mg, and Zomato.

Furthermore, several Reliance-owned merchant brands are also likely to accept Apple Pay. Besides this, Apple has made partnerships with several leading payment service providers in order to ensure that Apple Pay works on the networks of their merchant outlets, including Razorpay, PayU, Cashfree, Pine Labs and Juspay.

In other words, this strategy can help Apple Pay gain access to numerous existing merchants that accept card payments without having to overhaul the payment system at all.

Apple Pay Device Requirements in India

Apple Pay works on fairly new Apple products. In order to avail oneself of the service, one needs either an iPhone XR or a newer model running the iOS 18 operating system or newer version. Apple Watch owners require either the Apple Watch Series 6 or a newer model with a compatible iPhone.

Mac compatibility is also being considered, although Apple has yet to say when exactly the service will be introduced to Mac users in India.

The present roll-out, however, is primarily aimed at iPhone and Apple Watch owners who make their payments at offline outlets and in certain apps and websites.

How Secure Is Apple Pay?

Security and privacy still play an important role in the promotion of Apple Pay by the company. According to Apple, there are no real card numbers kept on the device or the server of the firm. Instead, each payment card gets its own encrypted Device Account Number, which is saved in the Secure Element on the device.

Tokenisation technology, which is provided by Visa and Mastercard, is also utilized by Apple. It means that the merchant will get not the card number of the user, but only the tokenized payment credential when the transaction is processed.

Apple claims it keeps no transaction data that can be connected to individual customers. In case of loss or theft of the iPhone or Apple Watch, a person can use the Find My function of the firm in order to suspend payment function of the device.

During regular transactions, people have to provide authentication via Face ID, Touch ID or a passcode.

Apple Pay vs UPI in India

The primary issue regarding the release of the brand in India is the possibility of a successful launch of Apple Pay in the market, which largely relies on UPI.

UPI payment services have become widely popular in India due to the usage of QR codes. In shops located in neighborhoods, restaurants, and even large retail stores, customers only need to scan a QR code or pay via UPI-enabled applications. This has made contactless card payments largely unnecessary in such cases.

This is not the payment system that Apple Pay can offer to Indian consumers due to the fact that it currently does not support UPI or RuPay cards. Instead, it can be used in conjunction with existing credit cards, as an alternative payment method for iPhone owners.

For example, Apple Pay may be useful when people want to shop in malls, eat at restaurants, purchase products in retail stores, and pay at other locations that accept contactless card payments. Users will simply authenticate on their iPhone or Apple Watch and tap to pay without entering a PIN or OTP at checkout.

Limited Bank Support Could Slow Early Adoption

One of the main limitations in the case of the launch of Apple Pay in India is the limitation of the banking sector of the system. Since only Axis Bank issued Visa and MasterCard credit cards are supported by the platform, most iPhone owners from India won't be able to use it until they have an appropriate Axis Bank credit card.

It is important to pay attention to what will happen next for Apple Pay in India. The expansion of banking partners might increase the number of users, while debit cards' support could be crucial for reaching even more customers from the country.

In addition, UPI integration might be one of the important features of Apple Pay in the future. However, Apple does not plan to include the support of UPI or RuPay in the current launch.

At the moment, Apple Pay comes to India as a way of contactless payment using credit cards and is not expected to replace UPI.

Apple Pay Finally Comes to India

The introduction of Apple Pay by Apple in India is a welcome step since it marks the entry of Apple’s payment system in one of the largest payment systems of the world. The first round of Apple Pay implementation has been restricted to Axis Bank Visa and Mastercard credit cards only, but the presence of prominent merchant and payment service providers makes the payment method quite widely accepted.

iPhone and Apple Watch owners who have valid Axis Bank credit cards can use the contactless payment method offered by Apple Pay to make card payments on various merchants and in physical stores as well. Yet, the success of this payment method in India in the long run is going to be based on the extent to which Apple integrates other banks, card types, and payment methods.

Thus, for the time being, Apple Pay is an alternative payment method to the existing one and not a replacement.