Apple in Talks With Banks to Start Payment Service in India

Apple Inc. is in discussions with key Indian banks and global card networks in preparation to start Apple Pay in the world’s most populous country.

The iPhone maker is in talks with ICICI Bank Ltd., HDFC Bank Ltd. and Axis Bank Ltd., as it aims to introduce its payment service in India around the middle of 2026, according to people with knowledge of the matter. The timeline remains fluid, but the talks indicate an approaching launch.

Apple is also discussing the plan with payment networks Mastercard Inc. and Visa Inc., said the people, who asked not to be named because the deliberations are private. Apple declined to comment, while representatives of the banks and payment networks didn’t immediately respond to requests for comment.

The planned launch marks another step in Apple’s push to expand in the country of 1.4 billion people with a rapidly expanding middle class. While its market share is still small in a region dominated by less expensive Android devices, Apple’s increased manufacturing and retail presence in India has helped it make inroads.

Apple Pay in India is expected to support India’s state-backed Unified Payments Interface, or UPI, alongside card based payments. UPI, which allows Indian customers to instantly transfer money and pay bills, dominates India’s digital payments space.

The National Payments Corporation of India, which operates and manages UPI, didn’t respond to request for comment. The Times of India earlier reported the India plans for Apple Pay.

Rival Alphabet Inc.’s Google Pay, Walmart Inc.-controlled PhonePe and Amazon.com Inc. are among the global players already operating digital payments platforms in India alongside homegrown players like Paytm.

India’s central bank late last year set new rules that allow biometric authentication, such as fingerprint or facial recognition, for digital payments. Indian authentication mechanisms have previously largely relied on one-time passwords sent via text message.

Apple Pay relies on Face ID or Touch ID to approve payments in-person via tap-to-pay, on websites and through apps.

With more than 750 million smartphone users on cheap mobile data and a state-backed push, India is one of the world’s fastest-growing digital payments markets, serving as a potential gateway for Apple to grow services revenue in the region. The company is known to take a cut of Apple Pay transactions.

Given the prevalence of mobile payments in the region, an Apple Pay launch could boost demand for its hardware. The feature is built into Apple Watches, iPhones, iPads and Macs. Apple has steadily increased its market share to about 10% of India’s smartphone sales, leaving it significant room for further growth.

Apple is also using India as a key production base to export iPhones to the US, diversifying its manufacturing footprint away from China. The move has helped shield customers in its home market from price markups due to President Donald Trump’s tariffs on China.

At the same time, it’s rapidly expanding its retail presence in India. It opened its sixth store, a location in Mumbai, this week. Apple Chief Executive Officer Tim Cook has frequently said that India sales are growing quickly, making the market a key lever for its overall growth.