Apple is reportedly preparing to bring its Apple Pay digital payments service to India by October. This digital payments platform is likely to start off with payments using credit cards from networks like Visa and MasterCard, while UPI payments will not be possible at the time of the launch.

Apple Pay’s long-awaited arrival in India could finally be getting closer. As per a Business Standard news report from August 9, Apple is working towards launching its digital payments platform in India by the end of September or in October.

The launch would give Apple a presence in India’s premium credit card payments segment. However, there is one major limitation at launch: Apple Pay will not support UPI transactions initially.

Apple Pay Could Arrive in India by October 

Apple Pay is expected to enter India by October, sources close to the development have told Business Standard, adding that Apple has been working toward launching it at the end of September or October.

The service is already available in more than 90 markets globally. The launch in India would be an important milestone for Apple in its payment services business, especially in one of the biggest digital payments markets in the world.

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Apple recorded double-digit growth in the Indian market, according to the Business Standard report.

Visa and Mastercard Cards Expected to Work First 

At launch, Apple Pay is expected to focus on credit cards running on global networks such as Visa and Mastercard.

Users will be able to add their card details to Apple Wallet and use compatible Apple devices to make payments. In physical stores, Apple Pay uses NFC technology to provide contactless payment at compatible POS terminals.

Therefore, the process will be similar to the process of using Apple Pay in other countries, whereby consumers store compatible cards in their digital wallet and use the device for payments.

No UPI Support at Launch 

The biggest limitation for Indian users will be the lack of UPI support when Apple Pay launches.

According to Business Standard, Apple would need NPCI approval to offer UPI and will also have to work with a sponsor bank for processing transactions using UPI.

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This is particularly important because UPI has become a major part of India’s digital payments ecosystem. Thus, the initial approach to launching this application based on the use of credit cards will definitely differ from expectations of Indian users.

The report does not say that UPI support has been ruled out permanently. Instead, Apple Pay is expected to launch without it initially.

Apple and Banks Are Negotiating Transaction Fees 

Another important part of Apple’s India preparations involves negotiations with major credit card issuers over transaction fees.

As per Business Standard, Apple was negotiating the percentage of the interchange fee it would get from each transaction using credit cards. According to the report, Apple was seeking 15–20 basis points from each transaction, while some major banks were pushing for a 10-basis-point fee.

Notably, the fee would not be charged to the customers or the merchants; rather, the fee would be collected by the banks from their revenue generation on card transactions.

Apple Pay Could Boost Credit Card Payments 

The arrival of Apple Pay could also have an impact on India’s credit card market.

As stated by Pine Labs’ CEO Amrish Rau in the quarterly earnings call of the company, credit card payments were already growing by 10-15 percent. Additionally, he mentioned that the introduction of Apple Pay may also boost credit card payments.

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For Apple users, they will have one more means to pay through contactless means without having to carry their credit card physically. For the banks and card networks, Apple’s entry of Apple can increase the transaction from their credit cards.

What to Expect From Apple Pay in India

If the reported timeline holds, Apple Pay could arrive in India around September-end or October, initially focusing on Visa and Mastercard credit cards.

Users seeking to use UPI payments will have to wait, since the service won’t be supporting UPI at the time of launch. Furthermore, Apple needs to finalize its bank partnerships and other requirements to enable future integration of UPI.

For now, the reported October launch represents Apple’s first major step into India’s payments market. Whether Apple Pay can become a significant payment option in India may ultimately depend on how quickly it expands beyond cards and brings features that fit the country’s UPI-heavy payments ecosystem.