\t\t\t\t\t\tSUMMARY<\/p>\n
Apple Pay is likely to launch in India by late September or October, initially focusing on Visa and Mastercard credit cards rather than UPI<\/p>\n
The launch comes nearly a decade after Apple first signalled plans to bring Apple Pay to India, as the company seeks a foothold in the country\u2019s growing premium credit-card market<\/p>\n
Apple is reportedly seeking 15-20 bps from card issuers, while some banks have proposed around 10 bps; the service is expected to initially support contactless payments through iPhones and Apple Watches at NFC-enabled PoS terminals<\/p>\n
Apple Pay is likely to launch in India by late September or October, giving the iPhone maker a foothold in the country\u2019s lucrative premium credit-card market.\u00a0<\/p>\n
According to a Business Standard report, citing sources, Apple Pay will initially support credit cards issued on global payment networks such as Visa and Mastercard.<\/p>\n
The service is unlikely to initially support UPI payments at launch, the report said. Apple would need approval from the National Payments Corporation of India (NPCI), which operates the UPI network, as well as a partnership with a sponsor bank to route UPI transactions.<\/p>\n
Inc42 has reached out to Apple seeking comments on the development. The story will be updated based on their response.<\/p>\n
Apple has been in talks with some of India\u2019s largest credit card issuers over the fee it would earn on transactions processed through Apple Pay, once it is launched in the country.\u00a0<\/p>\n
The company is reportedly seeking a 15-20 basis points (bps) share of the interchange fee on each credit card transaction, while some major card issuers have proposed a lower fee of around 10 bps.<\/p>\n
Apple Pay is expected to be rolled out in phases in India.<\/p>\n
In the first phase, the service is likely to focus on card-based contactless payments. Users would be able to add eligible debit or credit cards to Apple Wallet and use an iPhone or Apple Watch to make payments at NFC-enabled point-of-sale (PoS) terminals.<\/p>\n
Apple Pay allows users to store eligible credit and debit cards in Apple Wallet and make contactless payments at PoS terminals using NFC. The service is available in more than 90 markets globally.<\/p>\n
The potential launch could also boost credit card usage in India.\u00a0<\/p>\n
\u201cWe do believe Apple Pay will enter the market before the end of this year,\u201d Pine Labs CEO Amrish Rau said during the company\u2019s Q1 earnings call. Rau said a more diversified mix of payment methods could benefit Pine Labs as credit card usage grows alongside UPI.<\/p>\n
At present, cards issued in India cannot be added to Apple Wallet for Apple Pay transactions. The initial rollout could therefore focus on premium credit cards issued on global networks such as Visa and Mastercard.<\/p>\n
Apple Pay\u2019s Long Road To India<\/p>\n
Apple\u2019s reported India launch comes nearly a decade after the company first indicated that it wanted to bring Apple Pay to the country.<\/p>\n
Earlier, in 2017, Apple senior VP Eddy Cue said the company \u201cdefinitely\u201d wanted to launch Apple Pay<\/a> in India while speaking at Apple\u2019s development centre in Hyderabad. Cue did not announce a specific launch timeline at the time, saying only that Apple Pay was expected to come to India in the future.<\/p>\n However, the launch plans subsequently ran into regulatory and technical hurdles.<\/p>\n By late 2018, Apple had reportedly put its plans for a UPI-based payments service in India on hold<\/a>. The company had held discussions with leading banks and NPCI but was concerned about the RBI\u2019s data localisation requirements.<\/p>\n Apple also faced technical and design challenges related to how payments would flow through the UPI ecosystem.<\/p>\n At the time, Apple\u2019s proposed payments service was expected to rely heavily on UPI, something that doesn\u2019t seem to be on the anvil for the service.\u00a0<\/p>\n