Apple Pay will increase credit card use in India, but experts see no impact on iPhone prices

Apple Pay has been launched in India, roughly 12 years after Apple Pay debuted in the US. The payment service finally puts the final piece in the puzzle of the Apple ecosystem in India, joining the company's products and other services such as Apple Music and Apple TV. If you are wondering whether buying an iPhone through Apple Pay will help you save some money, that may not be the case.

Apple Pay is Apple's digital payments system. In India, you can currently link your Apple Wallet to your credit card to set it up. Globally, you can also link debit cards or use Apple Cash with the service. Once set up, you can use Apple Pay to make any purchase without needing an OTP or PIN.

The Apple ecosystem

Prabhu Ram, VP of industry research group at CMR, tells India Today Tech, "Apple Pay completes the Apple ecosystem experience, extending the tight integration of hardware and software into payments." The payment service launched just days after Apple expanded iCloud+ benefits with users now also getting access to Apple TV and Apple Arcade.

Tarun Pathak, research director at Counterpoint, says that Apple Pay as a service is liked by users. "Apple Pay has consistently ranked among the highest-rated Apple services for satisfaction, which shows how much it adds to the overall ecosystem experience," he tells India Today Tech.

Apple Pay is beginning with limited support. You can only use Visa and MasterCard credit cards issued by Axis Bank via the service for now. Though experts say it still opens Apple Pay to millions of users.

"Axis Bank, India's fourth-largest credit-card issuer with 16.23 million active cards, is a meaningful starting point," Prabhu Ram adds. "With India's credit-card base now above 122 million and contactless payments gaining traction, Apple Pay has a growing card ecosystem to tap into -- even as UPI continues to underpin everyday payment."

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

Tarun Pathak believes that adoption of Apple Pay may depend on the number of banking partners in the long run. "The key thing to watch is how quickly other leading banks come on board, because that will decide how far the addressable base expands," he adds.

Pathak points out that Apple Pay does not directly compete with UPI. "UPI will continue to dominate everyday payments, but Apple Pay is positioned differently: a convenience- and privacy-led experience that removes OTP friction at checkout," he says.

Apple says that it expects Indians to adopt Apple Pay as a secure form of digital payments. "India is home to a dynamic and digitally savvy population that continues to embrace a cashless future while expecting the highest standards of security and privacy, and we're so excited to bring Apple Pay to users in India today," said Jennifer Bailey, Apple's VP of Apple Pay and Apple Wallet.

If you expected that Apple Pay could get you more offers while buying an iPhone - particularly after the price hike - or any other Apple product, that might not be the case. "Apple Pay will not have a direct impact on iPhone pricing as Apple Pay is more like a payment method," Tarun Pathak says. "But it adds stickiness and elevates the payment experience for Apple users in India. Incentives at this point are more of experience, security and privacy." Though keep in mind that this is mere speculation at this point. And we do not know if Apple does have any incentive plans for the future with Apple Pay.

How will Apple Pay work in India?

For a payment service, like Apple Pay, you need partnerships on both sides - the consumer and the merchant. Axis Bank CEO Amitabh Chaudhry says that Apple Pay adds to choice for users at a time when digital transactions are becoming an important part of our lives. "The introduction of Apple Pay brings greater choice and flexibility to our Credit Card customers, with support across the Mastercard and Visa networks," Axis Bank CEO Amitabh Chaudhry said. "As payments become increasingly embedded in customers' everyday digital lives, our focus is on bringing together innovation and trust, while 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.