Apple Pay eyes India rollout with Axis Bank, sources say

Apple Inc. (AAPL.OQ) is preparing to roll out its Apple Pay service in India as early as next month, partnering initially with Axis Bank, according to sources familiar with the matter. The initial launch will enable Axis Bank credit cardholders to use Apple Pay for tap-and-pay transactions using tokenized card credentials stored on their devices. Apple is also in ongoing discussions with larger private lenders, including HDFC Bank and ICICI Bank, to expand bank participation across the country over time. This move marks a critical step in expanding Apple's Services division into the world's most populous country, following a regulatory change by the Reserve Bank of India that permitted biometric authentication such as Face ID and Touch ID for card transactions. India represents a high-growth territory for Apple, where the company's smartphone market share has doubled to 8% since 2022. Apple Pay enters a crowded payments landscape dominated by the Unified Payments Interface (UPI), which accounts for 84% of India's digital payment volumes. Successfully penetrating the market could significantly enhance Apple's ecosystem stickiness and long-term services revenue.