Apple Pay India launch looks closer, but the real test will come after it arrives

Apple Pay's much-awaited entry into the Indian market finally seems to be shifting from rumors to implementation stages, as rumors of an Apple Pay India launch by the end of 2026 start surfacing across various media outlets. While Apple is entering a market that already has digital payment solutions second-natured, their entry, perhaps, is not of doing something new but of becoming a part of something that already functions too well, almost as if it is an insiders-only system.

As we understand from Apple’s previous launch history of services in India, it is usual for Apple to wait until the scale, regulation, and alignment are on their side. These conversations with banks, regulators, and card networks suggest that Apple feels that the environment is finally conducive.

Why has Apple Pay taken so long to reach India?

India is not a simple market for global payment services. Unlike most countries, where card-based payments dominate, India's digital economy runs on UPI-a system fast, free for users, deeply integrated into daily life, and underpinned by government infrastructure. Any new entrant necessarily has to work around this reality rather than seeking to replace it.

Apple Pay, by design, is a card-first platform. Its strongest markets are those where the use of tap-to-pay cards is already common. In India, that is still a minority behaviour. This mismatch has likely been the biggest reason for the delay.

Because, while Apple had reportedly negotiated with Visa, Mastercard, banks, and regulators, it appears that this year the company will adopt a phased rollout rather than wait for that perfect, all-in launch.

How Apple Pay is expected to work in India initially

When Apple Launches Apple Pay Service, Apple is likely to focus on contactless payment using a card, i.e., through the NFC option, allowing users to just "tap" their iPhone or Apple Watch on payment terminals, similar to Apple Pay services available all around the world. In addition, Apple's "Tap to Pay on iPhone" feature is likely to be available, which enables merchants to start using an iPhone for payment purposes as well.

However, presently there is a major limitation. Indian-issued cards are still unable to add to the Apple Wallet platform. Firstly, that backend infrastructure needs to be altered before Apple Pay can fully work. This is a major factor that contributes to the slow roll-out that is anticipated to result from this.

From industry rumblings, it seems that there will not be a UPI integration in the first phase itself. Second, it is highly unlikely that Apple will apply for a Third Party Application Provider’s license for a UPI application, given just how complex this procedure is, besides how very different this architecture is from traditional card systems. So, for now, UPI seems firmly in the grip of Google Pay, PhonePe, and Paytm.

Will Apple Pay support UPI in the future?

This is the biggest unanswered question. If UPI is not there, Apple Pay would feel incomplete to the majority of Indians. In terms of daily expenditure, including chai, autos, shopping, street food, the majority is on UPI's QR code system alone, whereas cards are being selectively used.

Nevertheless, Apple does not need to win in this UPI war to seek justification for its presence in India. Actually, a future update that allows users to use UPI in Apple Wallet itself has immense potential to turn Apple Pay into a practical tool for day-to-day usage. However, in this case, Apple will have to exercise regulatory cooperation and technical changes.

Apple’s timing is not accidental

However, the timing of these talks may differ. Apple has seen its highest quarterly shipments from India in Q3 2025, shipping 5 million units to date for the first time into the top five global smartphone brands.

Our understanding from Apple’s strategy in India suggests that services usually follow a successful product rollout. Once you have achieved critical mass, they start to add further layers to really lock you into their world – Apple Music, iCloud subscriptions, and indeed Apple Pay potentially.

In other words, Apple, right now, has enough iPhones within Indian pockets to make Apple pay worth the effort.

How does this compare to Samsung Wallet in India?

In the case of Samsung Wallet, which was live in the country of India from 2022, the approach was the exact opposite. It adopted UPI early on and thought of itself as all in one, rather than being perceived as niche or exclusive.

This strategy has allowed Samsung to remain a viable option in the UPI-centric market. Apple is employing a fundamentally different model for their ecosystem, and while one might assume this is a more evolved and considered plan, this is unlikely to start threatening Samsung Wallet or Google Pay any time in the foreseeable future. The intention seems to be for Apple Pay to operate parallel to Google and Samsung wallets.

Expert analysis

Apple Pay's real strength is not daily QR payments, but security, global compatibility, and hassle-free card transactions. To users who travel abroad, engage in e-commerce, or regularly use credit cards for premium purchases, Apple Pay may eventually become the default payment method."

Apple’s device-level security features, Face ID-based authentication, or tokenized payment systems are proper advantages. Going forward, Indian banks as well as merchants may value these contactless payment options more.

Yet Apple will also have to realize that in India, consumers are not in a hurry to adopt new habits and will therefore require a degree of patience and possibly even compromise in terms of charging fees.

What this means for Indian users

To begin with, Apple Pay may not be a ‘must-have’ service to most consumers. UPI may be used mostly to make regular purchases. Apple Pay would become an ‘added convenience’ to consumers who are already using cards and are using their iPhones, especially from metropolitan cities.

Possibly those merchants may benefit more than consumers in the initial phase. Furthermore, hardware costs for small businesses may be reduced with the help of Apple, provided that Apple sets a reasonable price for Tap to Pay on iPhone.

The main point, however, is that Apple Pay doesn't need to be dominant in the market to succeed, it just needs to become sufficiently useful to ensure that iPhone owners keep the feature turned on.

Risks, limitations, and unanswered questions

The biggest risk, of course, is relevance. Without UPI, Apple Pay can remain a fringe product at best. There is also the question of fees, which apple is reportedly negotiating with banks and card-issuers. In a price-sensitive market like India, even small costs can slow down the adoption rate.

Another open question is that of the regulatory pace: payments are one of the most regulated areas, and timelines tend to slip. A 2026 launch is still a projection, not yet a promise.

It will have to finally convince the merchants that the facilitation of Apple Pay is worth the additional effort when, arguably, UPI already works reliably and cheaply.

Unlikely. Apple Pay is seen as a complement to existing applications rather than a replacement for them.

Apple Pay’s journey to India seems to be shaping up to be a slow, careful, and very Apple-like entry into the country. This time, Apple Pay’s entry may not be accompanied with fireworks, rather a quiet entry followed by an expansion if it feels comfortable to do so. Apple Pay’s entry to India may, however, prove to be an additional strength to it on account of its restraint.