Apple is reviving efforts to launch Apple Pay in India, but the road to entry is proving anything but smooth. Negotiations with leading Indian banks have stalled over a fundamental pricing gap - one that reflects just how different India's payments landscape is from the markets where Apple Pay has thrived.
Apple Pay typically charges between 0.15 percent and 0.20 percent of transaction value as settlement fees globally. In contrast, credit card transactions in India operate at around 5 basis points, while payments through the Unified Payments Interface (UPI) are processed at zero cost.
For Indian banks, that gap is simply too wide to bridge. "In India, payment firms operate on a blended rate for credit card payments at around 5 basis points, much lower than international standards," one banker told The Economic Times. "For Apple Pay, the standard pricing hovers around 15–20 basis points. It will have to climb down significantly to cater to Indian price points."
UPI's shadow looms large
India's payments market is built on volume, not per-transaction revenue - a model that leaves little room for global players to transplant existing fee structures. With UPI handling nearly 20 billion transactions every month, the scale opportunity is significant, but margins remain extremely thin. Industry executives note this makes it difficult for Apple to apply its standard commercial model without significant adaptation.
Talks resume after regulatory clearance
Apple had previously explored an India launch but earlier rounds of talks stalled over two-factor authentication requirements. With the RBI now permitting alternate verification methods, discussions have resumed. Apple is in talks with leading lenders including ICICI Bank, HDFC Bank and Axis Bank to roll out its mobile payment services in the country. According to sources, the company may consider launching with a smaller bank initially, where terms could be more flexible.
Apple Pay is expected to launch both card-based payments and UPI integration in India.
