Apple has been engaging in interactions with various Indian authorities and officials in recent weeks, intending to initiate discussions with NPCI in the near future. Their objective is to introduce Apple Pay launch in India into the South Asian market, presently under the dominion of Walmart’s PhonePe, Google’s GPay, and Paytm.
Sources familiar with the matter have indicated that Apple is diligently working on a localised version of Apple Pay specifically tailored for the South Asian market. This version will effectively harness the UPI platform, widely renowned for its popularity in facilitating payments within the region. The UPI platform operates under the auspices of NPCI, a specialised division of India’s central bank, the Reserve Bank of India.
Confidential sources have divulged that Apple aspires to empower iPhone users in India to initiate UPI transactions effortlessly by simply scanning QR codes, thereby eliminating the necessity for any third-party payment service provider (PSP) application. The sources have requested anonymity in discussing these undisclosed matters.
On May 24, Apple did not provide a response to the request for comment. The news concerning Apple’s renewed discussions regarding Apple Pay in India has not been previously reported.
During recent dialogues with Indian authorities, Apple proposed the utilisation of Face ID as a means of UPI authentication on iPhones. It should be noted, however, that Apple has yet to reach final decisions regarding its partners and the launch date. Consequently, the launch of Apple Pay in India is expected to be a few quarters away.
India currently represents a relatively modest market for Apple, and the potential introduction of Apple Pay is improbable to disrupt the existing ecosystem governed by incumbents. The UPI platform processes over 8 billion transactions each month, and over 90% of smartphones in India operate on the Android operating system.