Apple Pay’s India entry nears reality — regulatory talks, card network negotiations and what it could mean for digital payments stocks

Contents

Phased rollout likely, with cards first and UPI later What Apple Pay will offer Indian users once it launches Apple’s timing aligns with its rapidly growing India footprint Here’s what happened today and why traders reacted Competitive landscape: Apple Pay vs Samsung Wallet and UPI giants Why fintech firms began preparing for Apple Pay in advance What this means for investors tracking fintech, payments and platform companies

Apple is steadily moving toward launching Apple Pay in India, with the iPhone maker currently holding discussions with global card networks such as Mastercard and Visa, while simultaneously working on securing multiple regulatory approvals, industry sources said.

The company is targeting a phased rollout within the current calendar year, subject to regulatory clearance and finalisation of commercial agreements with banks and card issuers. Sources added that Apple is also negotiating fee structures with card issuers for access to its payment gateway — a key commercial element that will determine how quickly partners onboard.

Apple Pay currently operates in 89 global markets, but Indian-issued cards cannot yet be added to Apple Wallet. That is expected to change once approvals are secured and partnerships are finalised.

Business Standard first reported the development on January 21. Queries sent to Apple India, Visa and Mastercard did not elicit a response till publication.

Phased rollout likely, with cards first and UPI later

According to people familiar with the plans, Apple is expected to adopt a phased India launch strategy rather than attempting a full-stack payments entry from day one.

The first phase will likely focus on card-based contactless payments using NFC at point-of-sale (PoS) terminals
A later phase could explore UPI integration, but this would require a separate and more complex regulatory approval process
Apple Pay is unlikely to apply for a TPAP (third-party application provider) licence for UPI initially, given the distinct regulatory architecture and operational requirements

This suggests Apple’s early strategy will be to strengthen its ecosystem experience for premium users, rather than immediately competing head-on with mass-market UPI leaders like PhonePe and Google Pay.

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What Apple Pay will offer Indian users once it launches

Apple Pay is operated by Apple Payments Services, a subsidiary of Apple. Once live in India, users will be able to:

Store credit and debit cards inside Apple Wallet
Make contactless payments using iPhone or Apple Watch via NFC
Tap at compatible PoS machines for quick in-store checkout
Benefit from Apple’s tightly integrated security and privacy architecture

This could make Apple Pay particularly attractive to premium urban users who already rely heavily on cards for travel, retail and online spending.

Apple’s timing aligns with its rapidly growing India footprint

The push into digital payments coincides with Apple’s strongest-ever performance in India’s smartphone market. In 2025, Apple recorded its highest shipments in the country, with its market share hovering around 9–10%, placing it among the top five smartphone brands.

Analysts believe this growing installed base makes the timing strategically sound.

“India has emerged as one of the largest markets for iPhones. The rising installed base provides an opportunity for Apple to deepen its services play, with Apple Pay being a natural candidate given that India is the world’s largest digital payments market,” said Varun Mishra, analyst at Counterpoint, in comments to Moneycontrol.

He added, “Indian consumers are already accustomed to digital payments due to UPI’s widespread adoption, which should limit friction in onboarding Apple Pay users. To succeed, Apple must differentiate itself from QR-based apps like Google Pay through tighter iOS integration, a cleaner interface, and seamless payments across NFC, QR codes and cards.”

Mishra also pointed out that Apple’s strong emphasis on privacy and security could become a meaningful differentiator in an ecosystem increasingly concerned about data protection.

Here’s what happened today and why traders reacted

Market participants tracking the fintech and digital payments ecosystem took note of the development because Apple Pay’s entry signals growing competition and ecosystem expansion rather than disruption.

Traders highlighted three immediate implications:

Increased long-term opportunity for payment infrastructure providers and PoS companies
Potential boost for listed fintech firms offering cross-border merchant services
Reinforcement of India’s position as a global digital payments growth market

While there was no sharp single-stock reaction tied directly to this news, sentiment around the fintech, payments gateway, and digital infra theme remained constructive among thematic investors.

Competitive landscape: Apple Pay vs Samsung Wallet and UPI giants

Apple’s move also comes as Samsung Wallet continues to expand in India. Launched in 2022, Samsung Wallet now supports UPI-based integration, allowing users to make payments directly through its ecosystem, strengthening Samsung’s position in everyday digital transactions.

This means Apple is entering an already mature ecosystem dominated by:

UPI apps such as PhonePe, Google Pay and Paytm
Device-level ecosystems like Samsung Wallet
Bank-backed apps and card-linked wallets

For Apple Pay to gain traction, analysts believe its success will hinge on:

Superior user experience within iOS
Strong partnerships with top card issuers
Seamless onboarding for premium users
Integration across online and offline checkout flows

Why fintech firms began preparing for Apple Pay in advance

Interestingly, Indian fintech firms began preparing for Apple Pay’s entry as early as 2025, with several platforms already working on backend integrations to support international Apple Pay transactions for merchants.

This early groundwork means once Apple Pay launches officially, merchant acceptance — especially for cross-border e-commerce and premium retailers — could scale relatively quickly.

The move also reinforces the idea that India’s digital payments ecosystem is evolving beyond just UPI volume dominance into a multi-layered, globally connected payments infrastructure.

What this means for investors tracking fintech, payments and platform companies

For investors, Apple Pay’s India entry is not about one stock moving overnight. Instead, it signals structural deepening of the digital payments ecosystem.

Key implications include:

Payments infrastructure providers could see long-term volume expansion
Fintech firms with strong merchant networks may benefit from new integrations
Device ecosystem companies could increasingly monetise services beyond hardware
India’s attractiveness as a services revenue market for global tech giants continues to rise

As Apple deepens its services play in India, the market is likely to see increasing competition around experience, security, and ecosystem lock-in, rather than just transaction volume.

For long-term investors, that evolution points to a broader theme: India is no longer just a market for transactions — it is becoming a strategic battleground for global digital platforms.