Apple Pay Targets India’s 7-8% iPhone Base With Axis Card Launch as UPI Fees Return Oct. 15
Updated
Updated · The Federal · Sep 29
Apple Pay Targets India’s 7-8% iPhone Base With Axis Card Launch as UPI Fees Return Oct. 15
3 articles · Updated · The Federal · Sep 29
Summary
Apple Pay is set to enter India as a tokenized NFC credit-card service, reportedly starting with Axis Bank rather than integrating with the country’s dominant UPI network.
Axis cardholders would add eligible credit cards to Apple Wallet and pay by tapping iPhones or Apple Watches at NFC terminals, with Face ID, Touch ID or passcode authentication and merchants receiving tokens instead of card numbers.
Apple’s pitch centers on affluent users, not scale: iPhones hold about 7-8% of India’s market, but consultants say those customers spend far more than Android users, making a premium niche commercially attractive.
UPI’s economics are also shifting on Oct. 15, when merchants will face MDR on eligible UPI payments above Rs 2,000 after five years at zero, though credit cards already carry higher 1-2% merchant fees versus UPI’s 0.4% cap.
Limited NFC terminal coverage at small shops could constrain adoption, leaving Apple Pay initially strongest at larger retailers and premium outlets while preserving room for a later UPI expansion.