# Apple Pay Is Finally Coming To India — But It Won’t Work With UPI At Launch

URL: https://technosports.co.in/apple-pay-is-finally-coming-to-india-2/  
Published: 2026-09-18  
Updated: 2026-09-18  
Author: Reetam Bodhak

Apple Pay is set to land in India next month, but there’s a catch most headlines are glossing over: it won’t support **UPI or RuPay** at launch. Instead, it’ll work only with Visa and Mastercard credit cards — and NPCI has already made a pre-emptive move to blunt its biggest selling point.

## Apple Pay and Axis Bank Deal — And The Fee Fight Behind The Delay

Reuters reports Apple is preparing an October launch with **Axis Bank** as its first partner, while talks with HDFC Bank and ICICI Bank remain unfinalized. The holdup? Money. Apple wants 15–20 basis points of the interchange fee on every card transaction; Indian banks are countering at roughly 10.

|  | Interchange Share |
| --- | --- |
| **Apple’s ask in India** | 15–20 basis points |
| **Indian banks’ counter-offer** | ~10 basis points |
| **Apple’s existing flat US rate** | 15 basis points |

That US comparison matters — a Department of Justice antitrust complaint revealed Apple already charges American banks a flat 15 basis points per transaction, generating roughly $1 billion a year. So India’s fee ask isn’t a markup — it’s Apple’s standard playbook.

![Apple Pay](https://technosports.co.in/wp-content/uploads/2026/09/Apple-Pay-4-1024x614.webp)

## NPCI Struck First

Eight days before the Axis Bank report broke, [NPCI](https://en.wikipedia.org/wiki/National_Payments_Corporation_of_India) rolled out **UPI Tap & Pay**, letting users tap their phone at checkout without opening the UPI app — no PIN needed under ₹5,000, and it even works without mobile data. NPCI also launched MyUPI, an AI support layer built on its own FiMI model.

The timing looks deliberate: Apple Pay’s core global pitch has always been contactless convenience. NPCI just neutralized that advantage before Apple even showed up.

## Why UPI’s Scale Changes The Story

UPI processed a record 24.51 billion transactions worth ₹29.82 lakh crore in August 2026 alone — up 22% year-on-year. Against that backdrop, Apple Pay’s card-only debut looks less like disruption and more like a bet on India’s smaller, faster-growing credit card segment.

## **India’s Top Credit Card Issuers (July 2026):**

| Issuer | Cards Outstanding | Market Share |
| --- | --- | --- |
| HDFC Bank | 26.97 million | 22% |
| SBI Card | 22.76 million | 19% |
| ICICI Bank | 19.69 million | 16% |
| Axis Bank | 16.26 million | 13% |

If HDFC and ICICI eventually sign on too, Apple Pay’s addressable card base would jump from Axis’s 13% alone to roughly 51% of India’s entire card market.

## Market Reaction Was Muted

Apple shares rose 1.38% and Axis Bank gained 0.25% on the news, while HDFC Bank climbed 1.95%. The tepid response suggests investors aren’t yet pricing in a major earnings impact — only one partnership is confirmed, and India remains a small slice of Apple Pay’s global footprint across 89 markets.

For more breaking business and market news, check out related coverage on [TechnoSports](https://technosports.co.in).

## FAQs

### **Q1. Will Apple Pay support UPI when it launches in India?**

 No — the initial rollout works only with Visa and Mastercard credit cards. UPI support needs separate NPCI approval that hasn’t been secured yet.

### **Q2. Which bank is Apple Pay’s first partner in India?**

Axis Bank, according to Reuters, with talks ongoing but unfinalized with HDFC Bank and ICICI Bank.