Apple Pay to Launch in India by October

Apple is set to launch Apple Pay in India as early as October, marking the company's entry into the country's digital payments market. The service will initially support only credit cards, allowing Apple to earn a cut on every transaction processed through it.

According to reports, Apple Pay in India will begin by supporting global card networks such as Visa and Mastercard. However, Unified Payments Interface (UPI) support will not be available when the service goes live, as it would require sign-off from the National Payments Corporation of India and a partnership with a sponsor bank.

Once live, users will be able to store their cards on Apple Wallet and make contactless payments at compatible point-of-sale terminals using near-field communication.

Apple has spent months negotiating with India's largest credit card issuers over the interchange fee, which is expected to be drawn from the revenue that banks already earn on card payments. The company is seeking a 15 to 20 basis point share of the interchange fee per transaction, while some larger banks have pushed back with an offer closer to 10 basis points.

The launch of Apple Pay in India is expected to boost credit card usage, with Pine Labs chief executive officer Amrish Rau noting that credit card payment volumes were already climbing by around 10 to 15 per cent in the market.

Apple Pay currently operates in more than 90 countries, and its planned India launch comes as the company has posted double-digit growth in the Indian market. The service is expected to be ready by the end of September or October, according to one source.

The entry of Apple Pay into the Indian market is significant, as it will provide users with another option for digital payments. The service is expected to be popular among iPhone users, who will be able to make contactless payments using their devices.

The launch of Apple Pay in India is also expected to have an impact on the country's digital payments landscape, with the service likely to compete with existing players such as Google Pay and Paytm.

In terms of the broader implications, the launch of Apple Pay in India is a significant development for the country's financial technology sector. It highlights the growing importance of digital payments in India and the increasing competition in the market.

Overall, the launch of Apple Pay in India is a major development for the country's digital payments market, and it will be interesting to see how the service performs in the coming months.

The success of Apple Pay in India will depend on a number of factors, including the level of adoption among users and the extent to which the service is able to compete with existing players. However, with its strong brand and user base, Apple is well-placed to make a significant impact in the Indian market.