Apple in talks with ICICI Bank, HDFC Bank and Axis Bank to start payment service in India: Report

Apple Inc. is in talks with major Indian banks and global card networks to launch Apple Pay in the world’s most populous country.

According to sources with knowledge of the matter, iPhone manufacturer, ICICI Bank Ltd., HDFC Bank Ltd. and Axis Bank Ltd. It is in talks with and aims to introduce the payment service in India by mid-2026. The timeline remains unclear, but talks suggest launch is near.

The people, who wished to remain anonymous because the conversations were private, said Apple also owns payment networks Mastercard Inc. and Visa Inc. He said that he also discussed the plan with him. Apple declined to comment, while representatives for banks and payment networks did not immediately respond to requests for comment.

The planned launch marks another step in Apple’s push to expand in the country of 1.4 billion people with a rapidly expanding middle class. While its market share is still small in a region dominated by cheaper Android devices, Apple’s increased manufacturing and retail presence in India has helped it make headway.

Apple Pay in India is expected to support card-based payments as well as India’s government-backed Unified Payments Interface, or UPI. UPI, which allows Indian customers to transfer money and pay bills instantly, dominates India’s digital payments space.

The National Payments Corporation of India, which operates and manages UPI, did not respond to a request for comment. The Times of India had previously reported on India’s plans for Apple Pay.

Rival Alphabet Inc.’s Google Pay, Walmart Inc.-controlled PhonePe and Amazon.com Inc. are among the global players already operating digital payment platforms in India, along with local players such as Paytm.

India’s central bank laid out new rules late last year that allow biometric authentication such as fingerprint or facial recognition for digital payments. Authentication mechanisms in India were previously largely based on one-time passwords sent via text message.

Apple Pay uses Face ID or Touch ID to authenticate payments via tap to pay in person and through websites and apps.

With more than 750 million smartphone users using cheap mobile data and government-backed support, India is one of the world’s fastest-growing digital payments markets and a potential gateway for Apple to grow services revenue in the region. It is known that the company makes deductions from Apple Pay transactions.

Given the prevalence of mobile payments in the region, the launch of Apple Pay could increase demand for the hardware. This feature is built into Apple Watches, iPhones, iPads, and Macs. Apple has steadily increased its market share of smartphone sales in India to around 10%, leaving significant room for further growth.

Apple is also using India as a major manufacturing base to export iPhones to the US, shifting its manufacturing footprint away from China. The move helped protect customers in its domestic market from price increases due to President Donald Trump’s tariffs on China.

It is also rapidly expanding its retail presence in India. It opened its sixth store in Mumbai this week. Apple Chief Executive Officer Tim Cook has often said that India sales are growing rapidly, making the market a key lever for overall growth.