Apple Pay to Launch in India Soon: iPhone Users Can Pay Without Swiping Cards; Talks Begin with Mastercard and Visa.

Apple is preparing to launch its digital payment service, Apple Pay, in India. The company has reportedly begun discussions with major card networks like Mastercard and Visa.

According to a Moneycontrol report, Apple is in the process of obtaining the necessary regulatory approvals in India. The company plans to roll out the service in phases by 2026.

Service may launch initially without UPI

According to reports, in the first phase of Apple Pay's launch, the company will not apply for a Third-Party Application Provider (TPAP) license for UPI.

Initially, Apple's focus will be entirely on card-based contactless payments. This means iPhone users will be able to store their credit or debit cards in Apple Wallet and make payments at merchant outlets simply by tapping their phones.

Tap-to-pay feature will provide convenience

With Apple Pay, users will no longer need to carry physical cards. It uses 'tap-to-pay' technology, which is based on Near-Field Communication (NFC).

Users will be able to authenticate payments using Face ID or Touch ID. This will make the payment process much faster and more secure. Currently, the option to add Indian cards to Apple Wallet is not available.

Company working to meet regulatory requirements

The Reserve Bank of India (RBI) has strict regulations regarding digital payments in India, especially concerning data storage and card tokenization. Apple is discussing these regulations with the regulators to ensure compliance.

Discussions are also underway with banks regarding commercial agreements and fee structures. Apple typically takes a small percentage of each transaction as a fee from the bank, and reaching an agreement with Indian banks on this could be a significant challenge.

Could compete with Google Pay and PhonePe

Apple Pay will compete with established players like Google Pay, PhonePe, and Paytm. However, Apple Pay will only work on Apple devices (iPhone, Apple Watch, iPad).

The other apps, however, work on both Android and iOS. Apple's market share in India is steadily increasing, making this service potentially very popular among premium users.

Service available in 89 countries globally

Apple Pay is currently available in 89 countries worldwide. Its entry into India is part of Apple's strategy to position India as its second-largest market after China.

Previously, Apple had partnered with Razorpay in India to roll out some features for international payments, but the full service for domestic transactions is yet to be launched.