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.
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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.
NPCI Struck First
Eight days before the Axis Bank report broke, NPCI 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.
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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.