Apple Pay could launch in India in October with support for Visa and Mastercard cards, while UPI integration may arrive later as Apple and NPCI work to resolve technical and authentication challenges.
Apple is reportedly preparing to launch its Apple Pay payment service in India as early as October 2026, marking the company's long-awaited entry into one of the world's largest digital payments markets.
However, the service may arrive in India without UPI support at launch, according to a recent report.
Under the reported initial plan, Apple Pay would allow iPhone and Apple Watch users to make contactless payments at NFC-enabled point-of-sale terminals.
Users could add supported Visa and Mastercard credit and debit cards to Apple Pay, with card details protected through tokenisation.
Apple is reportedly in advanced discussions with HDFC Bank, ICICI Bank and Axis Bank to support the service. Earlier reports had suggested that Apple was working with these banks and card networks on an India launch, with UPI expected to be part of the service.
The biggest reason is India's rapidly expanding digital payments market. India has built one of the world's most advanced digital payment ecosystems, with UPI becoming the primary method for everyday digital transactions.
For Apple, staying outside this market means missing an opportunity to make its devices more useful to Indian customers.
Apple also has a particularly strong position in India's premium smartphone segment. Although iPhones account for a relatively small share of India's overall smartphone market, their users are concentrated heavily in the premium category.
Apple Pay could therefore give the company another way to add value to its existing iPhone and Apple Watch ecosystem.
The service could also make Apple devices more competitive against smartphones and wearables that already support contactless payments in India and other markets.
Another important factor is Apple's relationship with banks and card networks. Apple Pay can bring card payments directly into the company's hardware ecosystem, potentially increasing card use through iPhones and Apple Watches.
Apple also typically receives a small share of transactions processed through its payment service, creating a potential services-revenue opportunity.
UPI is likely to be the biggest challenge for Apple's India strategy.
Unlike traditional card payments, UPI is deeply integrated with India's banking and payment infrastructure.
Apple Pay's authentication system is built around device-level security features such as Face ID and Touch ID, while India's UPI ecosystem has its own regulatory and authentication requirements.
Interestingly, NPCI has already introduced on-device biometric authentication for UPI transactions, meaning users can increasingly authenticate payments using biometrics instead of a UPI PIN.
NPCI's framework includes specific requirements around customer consent, device binding and authentication.
Apple and NPCI therefore still need to align their systems and requirements before UPI can reportedly be integrated into Apple Pay.
Rather than waiting for every technical and regulatory issue to be resolved, Apple could launch Apple Pay first with card payments.
This would allow the company to establish the service among iPhone and Apple Watch users while discussions around UPI continue.
Customers with supported Visa or Mastercard cards would be able to tap their devices at compatible NFC terminals without carrying the physical card.
UPI could then be added at a later stage once Apple and NPCI resolve the remaining technical requirements.
The timing could also be significant. If Apple follows its usual product cycle and introduces the iPhone 18 series in September, an Apple Pay launch in October would give the company an opportunity to promote the payment service alongside its latest hardware.
Apple has been discussing an India launch with major banks for months. In February, reports indicated that the company was preparing to bring Apple Pay to India and was exploring support for both card payments and UPI.
The latest report suggests that Apple may have changed its strategy and decided to launch the service in stages instead.
If the reported launch goes ahead, Apple Pay could make contactless card payments considerably more convenient for iPhone and Apple Watch owners.
However, the absence of UPI could limit its usefulness during the initial phase. UPI is used across everything from small merchant payments to online purchases and bill payments, while NFC card payments are more dependent on compatible terminals.
That means Apple Pay could initially appeal mostly to Apple's premium customer base rather than becoming an immediate competitor to UPI-based payment apps.
Apple has not officially confirmed an October launch or the reported limitations around UPI. For now, the reported plan points towards a card-first Apple Pay rollout, followed by UPI integration once the technical and regulatory issues are resolved.
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