New Delhi, September 30 (Yes Punjab News)
Apple Pay’s debut in India marks an expansion of Apple’s services ecosystem in a market where the Unified Payments Interface (UPI) accounts for more than 80 per cent of digital payment volumes, industry experts said on Wednesday.
The launch brings Apple’s hardware, software and services closer together through an integrated payment experience, said Prabhu Ram, Vice President of the Industry Research Group at CMR.
Apple Pay initially supports Visa and Mastercard credit cards issued by Axis Bank on iPhone, iPad and Apple Watch, with support for Mac expected to follow soon.
Ram said Axis Bank, India’s fourth-largest credit card issuer, was a significant starting point for the service, given its 16.23 million active credit cards. India’s overall credit card base has crossed 122 million, while contactless payments are also gaining traction.
He noted that Apple Pay was unlikely to displace UPI, which is expected to remain central to everyday payments in India. However, the service could strengthen Apple’s ecosystem by making card payments more convenient for its existing device users.
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Research Director Tarun Pathak of Counterpoint Research said Apple Pay’s introduction could encourage greater credit card usage among Apple device owners by reducing friction associated with one-time passwords (OTPs) at checkout.
“The key thing to watch is how quickly other leading banks come on board, because that will decide how far the addressable base expands,” Pathak said.
“UPI will continue to underpin everyday payments in India, but Apple Pay gives Apple an opportunity to deepen the ecosystem experience for its existing user base — and potentially make card payments more seamless and relevant on Apple devices,” he added.
Pathak said credit card usage and near-field communication (NFC) adoption were growing at double-digit rates, with the country’s credit card base having nearly doubled since the COVID-19 pandemic to more than 120 million.
He also noted that Counterpoint Research’s consumer surveys had repeatedly ranked Apple Pay among the highest-rated Apple services in terms of customer satisfaction.
According to Apple, customers with eligible Axis Bank-issued Visa and Mastercard credit cards can add their cards to Apple Pay and use them at thousands of in-store and online merchants across India, as well as at locations that accept NFC transactions.
The company said the service offers customers a secure and private way to make payments in stores, apps and on the web, without having to enter a PIN or OTP at checkout.
Apple Pay’s entry into India comes as digital payment options continue to expand, with the service providing Apple device users with an additional way to make card-based transactions alongside widely used UPI payments.
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