Apple is preparing to bring Apple Pay to India as early as October 2026, marking the company’s entry into one of the world’s largest digital payments markets. The service is expected to initially work with Axis Bank credit cards and could offer iPhone and Apple Watch users a card-based tap-to-pay option without requiring a separate UPI payment application.
The planned launch comes at an interesting time for India’s digital payments ecosystem. UPI continues to dominate everyday digital transactions, but a new merchant discount rate framework is due to take effect from October 15, creating a changing competitive environment just as Apple prepares to introduce its own payment platform.
Apple Pay Could Launch in India Next Month
According to Reuters, Apple is set to launch Apple Pay in India next month in partnership with Axis Bank. The initial rollout is expected to support Axis Bank credit cards, while Apple has also been discussing potential partnerships with other major private-sector banks, including HDFC Bank and ICICI Bank. Commercial terms with those banks had not been finalised at the time of the report.
The expected launch would end Apple’s long absence from India’s digital payments market. Apple Pay has been available in several international markets for years, but India has remained an important exception because of its distinctive payments infrastructure and the overwhelming adoption of UPI.
Apple has not publicly announced a final India launch date, so October should be treated as a reported launch window rather than a confirmed Apple event date. The initial partnership with Axis Bank also suggests that Apple could follow a phased rollout, adding more banks and card networks over time.
How Apple Pay Will Work in India
Apple Pay is fundamentally different from the QR-code-based UPI experience used by most Indian consumers. Instead of requiring users to open a UPI application and select a bank account, Apple Pay stores a tokenised representation of an eligible payment card in Apple Wallet.
When a user makes a supported contactless payment, the iPhone or Apple Watch communicates with a compatible payment terminal using NFC. The actual card number is not shared with the merchant during the transaction because Apple Pay uses a device-specific token and security mechanisms to authorise the payment.
This makes Apple Pay particularly relevant for users who already rely on credit cards for payments. Rather than carrying the physical card, an eligible card can be added to Apple Wallet and used through a compatible iPhone or Apple Watch.
The initial India rollout is reportedly expected to focus on card-based payments rather than attempting to replicate the full functionality of UPI. Earlier reports had also indicated that Apple was exploring an India launch based initially around Visa and Mastercard credit cards, although the final supported cards and features will depend on Apple’s agreements with banks and payment networks.
Apple Pay Will Enter a UPI-Dominated Market
The biggest challenge for Apple Pay will be India’s established UPI ecosystem. UPI processed 24.5 billion transactions worth about Rs 29.82 lakh crore in August 2026 and accounted for around 84% of India’s digital transaction volume, according to Reuters.
Consumers have become accustomed to making payments by scanning QR codes, entering a UPI ID or selecting a bank account through applications such as PhonePe, Google Pay and other UPI apps. UPI also works across Android and iPhone, while Apple Pay is inherently tied to Apple’s devices and supported cards.
This means Apple Pay is unlikely to simply replace UPI for India’s everyday low-value payments. A customer buying groceries from a neighbourhood shop, for example, can already scan a UPI QR code from virtually any supported smartphone without needing a credit card or NFC-enabled payment terminal.
Apple Pay instead enters a different part of the market, particularly card-based transactions and contactless payments. Its convenience could appeal to iPhone users who already hold eligible credit cards and prefer using their phone or Apple Watch instead of carrying a physical card.
UPI MDR Change Adds a New Dimension
Apple’s expected launch is also arriving just weeks before a significant change to India’s UPI payment economics. From October 15, 2026, a 0.4% Merchant Discount Rate will apply to certain UPI person-to-merchant transactions above Rs 2,000, subject to exemptions and transaction-specific rules. Person-to-person payments and qualifying smaller transactions will remain outside the new charge structure.
The change is significant because UPI operated for years without a conventional merchant fee structure for most transactions. The new framework is intended to provide a more sustainable economic model for the payments ecosystem while maintaining free access for consumers in ordinary UPI use cases.
However, the new MDR does not automatically make Apple Pay cheaper for merchants. Apple Pay transactions generally involve card networks and the commercial economics of card payments can differ substantially from UPI. Apple Pay’s initial focus on credit cards therefore means it should be viewed as an additional payment option rather than a direct replacement for UPI’s entire transaction base.
Could Apple Pay Challenge UPI?
Apple Pay could compete with UPI in specific payment situations, but the two services are built around different models. UPI is an account-to-account payment infrastructure that has become deeply embedded in India’s retail economy, while Apple Pay acts primarily as a secure digital wallet for supported payment cards.
The distinction is particularly important in India’s smaller merchants and everyday retail transactions. UPI’s QR-code infrastructure does not require a consumer to own a credit card, while Apple Pay’s reported initial India rollout will be centred on eligible bank cards.
Apple Pay could nevertheless strengthen contactless card payments among India’s growing premium smartphone and credit-card user base. The service also has an advantage for Apple ecosystem users because payments can be integrated directly into the iPhone and Apple Watch experience without requiring a separate third-party payment interface.
Its potential impact will therefore depend heavily on how quickly Apple adds banks, card networks and merchants. A limited initial rollout with one major banking partner would have a much smaller market impact than a broad launch covering multiple banks and payment networks.
Axis Bank Becomes Apple’s First Reported Banking Partner
Axis Bank is expected to be the initial banking partner for Apple Pay in India, according to Reuters. The bank had around 16.26 million active credit cards as of July 2026, giving Apple access to a sizeable existing cardholder base from the beginning of the rollout.
Apple is also reportedly in discussions with HDFC Bank and ICICI Bank. Bringing additional large banks onto the platform would be important for expanding Apple Pay beyond the initial group of Axis Bank customers and creating a broader card ecosystem.
The phased approach is consistent with Apple’s strategy in other markets, where Apple Pay has expanded progressively through additional banks, card issuers and payment networks. The Indian rollout could follow a similar path, although the final list of participating banks and supported cards remains subject to Apple’s commercial agreements.
Apple Pay’s India Entry Is About More Than UPI
The arrival of Apple Pay would give Indian iPhone users another way to make digital payments, but its significance goes beyond whether it takes market share from UPI. It would also mark Apple’s deeper integration into India’s financial technology ecosystem, including relationships with banks, card networks and payment infrastructure providers.
The timing is particularly notable because India’s payments market is entering a new phase. UPI is introducing a selective MDR framework, while contactless card payments and digital wallets continue to evolve. Apple’s entry adds another major technology company to this increasingly competitive payments environment.
For consumers, the practical difference will be straightforward: UPI will remain useful for bank-account payments and QR-based transactions, while Apple Pay could offer a more direct tap-to-pay experience for users with supported cards and Apple devices.
Apple Pay’s reported October launch therefore should not be viewed simply as a replacement for UPI. It is better understood as Apple’s attempt to establish a card-based contactless payments layer within India’s already highly developed digital payments ecosystem. How much adoption it achieves will depend on bank support, card availability, merchant acceptance and the payment habits of India’s large iPhone user base.
