Apple Pay May Boost Credit Card Use in India, But iPhone Prices May Stay Same

Apple Pay has launched in India, roughly 12 years after its debut in the United States. This payment service puts the final piece of the Apple ecosystem puzzle in place within the country, integrating with the company's products and other services like Apple Music and Apple TV. If you are wondering whether buying an iPhone via Apple Pay will save you money, that may not be the case.

Apple Pay is Apple's digital payment system. In India, users can currently link a credit card to Apple Wallet to set up the service. Globally, debit cards can also be linked, and Apple Cash is an option. Once set up, Apple Pay allows users to make purchases without needing to enter an OTP or PIN.

The Apple Ecosystem

Prabhu Ram, Vice President of the industry research group CMR, tells a famous publication: "Apple Pay completes the Apple ecosystem experience, extending the tight integration between hardware and software into the realm of payments." The service launched just days after Apple expanded the benefits of iCloud+, now allowing users to access Apple TV and Apple Arcade as well.

Tarun Pathak, Research Director at Counterpoint, notes that Apple Pay is highly valued by users. "Apple Pay has consistently ranked among Apple's top-rated services in terms of satisfaction, demonstrating how much it contributes to the overall ecosystem experience," he tells a famous publication.

Apple Pay is launching with limited compatibility. For now, only Visa and MasterCard credit cards issued by Axis Bank can be used with the service. However, experts agree that this opens the door to millions of users.

"Axis Bank—India's fourth-largest credit card issuer, with 16.23 million active cards—represents a significant starting point," adds Prabhu Ram. "With India's credit card base already exceeding 122 million and the rise of contactless payments, Apple Pay has an expanding card ecosystem it can tap into, even as UPI remains the foundation for everyday payments."

According to Ram, UPI accounts for more than 80 per cent of digital payment volume in India.

Tarun Pathak believes that the long-term adoption of Apple Pay could depend on the number of banking partners. "The key will be to see how quickly other leading banks come on board, as that will determine the extent to which the potential user base expands," he adds.

Pathak notes that Apple Pay does not compete directly with UPI. "UPI will continue to dominate everyday payments, but Apple Pay positions itself differently: it offers an experience focused on convenience and privacy that eliminates the friction of OTP codes during the checkout process," he states.

Apple expects users in India to adopt Apple Pay as a secure form of digital payment. "India has a dynamic, tech-savvy population that continues to embrace a cashless future and demands the highest standards of security and privacy; that is why we are thrilled to bring Apple Pay to users in India today," said Jennifer Bailey, Apple’s Vice President of Apple Pay and Apple Wallet.

If you were hoping that Apple Pay would help you snag better deals when buying an iPhone-especially following the price hikes-or any other Apple product, that might not be the case. "Apple Pay won't have a direct impact on the price of the iPhone, as it is primarily a payment method," explains Tarun Pathak. "However, it boosts loyalty and improves the payment experience for Apple users in India. Right now, the incentives are focused more on experience, security, and privacy." That said, it is worth noting that this is purely speculation for the time being, and we do not know if Apple has plans for future incentives for Apple Pay.

How will Apple Pay work in India?

For a payment service like Apple Pay, agreements are needed on two fronts: with the consumer and with the merchant. Amitabh Chaudhry, CEO of Axis Bank, states that Apple Pay expands user options at a time when digital transactions are becoming a significant part of our lives. "The arrival of Apple Pay offers greater variety and flexibility to our credit cardholders, thanks to compatibility with the Mastercard and Visa networks," noted Amitabh Chaudhry, CEO of Axis Bank. As payments become increasingly integrated into customers' daily digital lives, our approach is to combine innovation and trust, making every interaction more intuitive and relevant.

While Axis Bank is the only banking partner for now, Apple says it has millions of merchants enrolled already ready to accept Apple Pay payments. Today, you can go and use Apple Pay on Blinkit, Croma, Ixigo, Zomato and many more brands. But there is another layer, payment service providers (PSPs) who actually process your transaction. This includes platforms like Cashfree, JusPay, Mswipe, Paytm, PayU, Pine Labs, Razorpay, Worldline, and more.

Juspay co-founder Sheetal Lalwani expects Apple Pay to serve as a secure payment option. “By enabling Apple Pay for our merchant ecosystem, we are helping businesses offer customers greater choice in how they pay, as well as providing an easy, secure and private checkout experience,” she said in a statement to India Today Tech.

Cashfree senior vice president Nitin Pulyani believes that Apple Pay could drive card transactions in the country. “Annual credit card transaction volume reached 5.7 billion transactions in 2025, up 2.6x from 2021. However, there is still friction when it comes to paying through cards,” he told India Today Tech over email. “Apple Pay significantly streamlines this process, providing an easier and more secure way to pay.”

Apple is expected to bring in more banks and merchant partners to Apple Pay in India. Globally, the service is available in over 90 countries with 11,000 bank and network partners. It is likely that the company will also bring the option to link your debit card to Apple Pay later too. Whether UPI integration is on the cards, we don’t know yet.

Apple Pay is currently available for all iPhones ranging from the iPhone XR as long as the device is running on iOS 18 or newer versions. The service also works on Apple Watch Series 6 or later, running watchOS 11 or newer versions. A version for Mac is coming soon.

ABOUT THE AUTHOR

Kahekashan

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Kahekashan is a passionate technophile with a keen eye for cutting-edge gadgets, emerging technologies, and everything in the digital realm. Raised in a Defence family with strong values and a background in literature, she has consistently pursued excellence in every endeavour. Her last full-time assignment involved content writing with the Indian School of Business.

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