Apple Pay Launches in India as UPI Accounts for Over 80% of Digital Payments

Apple Pay's launch in India strengthens the company’s ecosystem in a market where Unified Payments Interface (UPI) accounts for over 80 per cent of digital payments volume, industry experts said on Wednesday. Apple Pay debuts in a digitally advanced payments market and marks Apple’s ecosystem completing the experience around hardware, software and services through a tight, seamless integration, said Prabhu Ram, VP – Industry Research Group, CMR.

Apple Pay initially supports Axis Bank‑issued Visa and Mastercard credit cards on iPhone, iPad and Apple Watch, with Mac support to follow soon. "As India’s fourth-largest credit-card issuer, Axis Bank, with 16.23 million active credit cards, is a meaningful starting point for Apple Pay. India’s credit-card base has now crossed 122 million, while contactless payments are also gaining traction," said Ram. He said that Apple Pay is unlikely to displace UPI which will continue to underpin everyday payments in India.

However, Apple Pay gives Apple an opportunity to deepen the ecosystem experience for its existing user base — and potentially make card payments more seamless and relevant on Apple devices, he added. Research Director Tarun Pathak of Counterpoint Research said the new service in India could deepen card usage among Apple device owners by removing OTP friction at checkout. "The key thing to watch is how quickly other leading banks come on board, because that will decide how far the addressable base expands," said Pathak.

“UPI will continue to underpin everyday payments in India, but Apple Pay gives Apple an opportunity to deepen the ecosystem experience for its existing user base — and potentially make card payments more seamless and relevant on Apple devices,” Pathak said. "Credit card usage and NFC adoption are growing at double-digit rates, and the credit card base has nearly doubled since COVID to more than 120 million," he said. Counterpoint's consumer surveys have repeatedly shown Apple Pay ranking among the highest-rated Apple services for satisfaction.

Customers with Axis Bank-issued Visa and Mastercard credit cards can add their cards to Apple Pay and use them at thousands of in-store and online merchants across India, as well as anywhere that accepts NFC transactions, the company said in a statement. The launch brings Apple customers an easy, secure, and private way to pay in stores, in apps, and on the web at retailers of all sizes — all without the need to type in PINs or use OTPs at checkout.

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