Apple Pay is expected to launch in India as early as October 2026, initially supporting only Visa and Mastercard credit cards and excluding UPI, according to an Economic Times report. Apple has not officially confirmed the timeline or feature set.
Apple has informed industry contacts that it plans to launch the service by late September or October, aligning with its annual iPhone release. Apple Pay is currently available in more than 90 countries.
Why is UPI missing at launch?
UPI will not be available when the service launches. Activation requires approval from the National Payments Corporation of India (NPCI) and a partnership with a sponsor bank to route transactions. Apple has not yet met these requirements. As a result, Apple Pay’s initial presence in India will be limited to NFC card payments and online card transactions. Thus, restricting its reach compared to UPI-based apps that are free and widely accepted by Indian merchants.
Fee dispute with banks
A key issue in negotiations is the interchange fee Apple is requesting from card transactions. Apple has asked for 15-20 basis points per transaction, while major Indian banks have countered with an offer of about 10 basis points. Interchange refers to the fee a merchant’s bank pays to the card-issuing bank for each transaction and is included in the merchant discount rate. If agreed, the fee would come from banks’ existing interchange revenue, not as an additional charge to customers or merchants.
Apple is reportedly in talks with major Indian lenders, including HDFC Bank, ICICI Bank, and Axis Bank, to offer credit cards through its service.
Industry reaction
Pine Labs CEO Amrish Rau said during the company’s June-quarter earnings call that Apple Pay’s entry is likely before the end of 2026. According to Rau, Apple Pay could further boost credit card usage in India, which he said was already growing 10-15%. Rau said credit card volumes could keep expanding alongside UPI rather than being displaced by it.
Card payments already restored for Apple account purchases
The Apple Pay plans coincide with the company’s recent decision to resume accepting Visa and Mastercard credit and debit cards for Apple Account purchases in India as of July 2026, ending a four-year suspension.
The phased rollout allows eligible cardholders to pay directly for iCloud+, Apple Music, and other subscriptions, as well as App Store purchases. Cardholders don’t have to rely on UPI, net banking, or Apple Account balance top-ups, which had been the only options since 2022. Earlier in 2022, Apple suspended card payments after the Reserve Bank of India introduced stricter rules for recurring card transactions. The new rules require stronger authentication, tokenized card credentials, and prohibit merchants from storing raw card details.
The resumption reflects Apple’s broader approach of adapting its payments and App Store systems to comply with local regulations. This was visible in fee changes in the EU and app distribution adjustments in Japan and South Korea. While Apple has not commented on the card payment rollout or confirmed a timeline for Apple Pay, the move has renewed speculation about its entry into India. This follows earlier reports of stalled commission negotiations with banks.
What does it mean for users?
At launch, the service will mainly benefit iPhone, Apple Watch, and iPad users with eligible Visa or Mastercard credit cards. It will allow one-tap checkout at NFC-enabled stores, apps, and websites. However, it will not immediately impact the QR-code-based UPI payments that most Indians use daily. Apple’s addition of UPI support will depend on NPCI clearance and the completion of a sponsor-bank partnership. Timelines for these steps have not been disclosed yet.
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