Apple Pay in India: Can Apple challenge UPI giants Google Pay, PhonePe?

Apple is moving closer to launching its digital payments service Apple Pay in India, with the company in active discussions with global card networks, including Mastercard and Visa, while pursuing regulatory clearances, according to reports emerging on January 21, 2026.

The iPhone maker is targeting an initial rollout by the end of calendar year 2026, subject to finalising commercial agreements and securing necessary approvals from Indian regulators, according to Business Standard, which first reported the development. The launch would mark Apple Pay's entry into its 90th market worldwide.

Phased Approach Begins With NFC Payments

Apple's India entry is expected to unfold in phases, with the first focusing on card-based contactless payments using near-field communication (NFC) technology. Users would store their credit and debit cards in Apple Wallet and make payments by tapping their devices at point-of-sale terminals.

Integration with the Unified Payments Interface, India's dominant digital payments system, would require a separate and more complex regulatory framework, sources told Moneycontrol. Apple is unlikely to apply for a Third-Party Application Provider license for UPI during the initial phase, as the approval process involves distinct technical requirements that differ fundamentally from card-based systems.

Currently, Indian-issued cards cannot be added to Apple Wallet, limiting the service's functionality for domestic users. Apple is negotiating fee structures with card issuers for access to its payment gateway.

Cross-Border Groundwork Already Underway

While Apple Pay remains unavailable for domestic transactions, its presence in India has expanded through cross-border payments. Payment gateways Razorpay and Cashfree enabled Apple Pay as a checkout option for international customers purchasing from Indian merchants in September 2025. Akasa Air recently became the first Indian airline to accept Apple Pay for international flight bookings, signalling growing backend readiness among Indian businesses.

"Apple Pay has redefined digital payments globally through its speed, security, and simplicity," said Rahul Kothari, Chief Operating Officer at Razorpay.

Competitive Landscape and Market Opportunity

Apple's timing aligns with its growing presence in India's smartphone market. The company recorded its highest-ever shipments in 2025, with market share hovering around 9–10 per cent. iPhone exports from India crossed Rs 2 trillion ($23 billion) in 2025, an 85 per cent increase over the previous year.

Rival Samsung already operates Samsung Wallet in India with UPI integration, offering biometric authentication and contactless payments on Galaxy devices.

"India has emerged as one of the largest markets for iPhones," said Varun Mishra, analyst at Counterpoint, noting the expanding installed base creates a strong foundation for localised services like Apple Pay.

India's digital payments ecosystem has grown rapidly, with UPI accounting for over 80 per cent of retail digital transactions. Whether Apple can carve out space in a market dominated by QR-based UPI apps like PhonePe and Google Pay remains to be seen.