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Apple is preparing to launch Apple Pay services in India by October 2026, following the securing of necessary regulatory approvals. The move positions Apple Pay as a potential competitor to the Unified Payments Interface (UPI), the current leader in India’s digital payments landscape.
Direct Bank Linkage and NFC Technology
Unlike UPI, which typically relies on QR codes or Virtual Payment Addresses (VPAs) linked to bank accounts, Apple Pay utilises Near-Field Communication (NFC) technology. This allows for direct linkage to a user’s bank account or bank card, enabling contactless payments via an encrypted token. According to Mark Gurman at Bloomberg, this approach bypasses the standard UPI interface.
Partnerships with Indian Banks
Apple is reportedly collaborating with several Indian banks to facilitate the launch. Discussions are underway with Axis Bank, HDFC Bank, and ICICI Bank, with initial reports suggesting Axis Bank may be the first partner. This partnership approach aims to integrate Apple Pay seamlessly into the existing Indian banking infrastructure.
How Apple Pay Differs from UPI
- Technology: Apple Pay uses NFC for contactless payments, while UPI relies on QR codes or VPAs.
- Bank Linkage: Apple Pay links directly to bank accounts or cards, whereas UPI functions as an intermediary.
- Security: Apple Pay employs tokenization, meaning your actual card details are not shared with merchants, and payments are secured by Face ID, Touch ID, or passcode.
While Google Pay already offers NFC-based payments in India, it doesn’t currently allow direct connection to a user’s bank, setting Apple Pay apart. The launch comes as the National Payments Corporation of India (NPCI) and the government face scrutiny over Merchant Discount Rate (MDR) rules for UPI transactions above Rs 2,000 for business needs.
Apple Pay is also compatible with other Apple devices, including Apple Watch, iPad, and Mac, offering a consistent payment experience across the Apple ecosystem.
