Apple Orchestrates Strategic Entry into India's Digital Payments Arena

Apple, the colossus hailing from California, is laying the groundwork for the long-awaited introduction of Apple Pay in India according to TechCrunch. With a reputation as the world's most affluent company and a venerated creator of coveted gadgets, Apple has, in recent weeks, been actively engaging with Indian regulatory authorities, and is poised to confer with the National Payments Corporation of India (NPCI), a subsidiary of the Reserve Bank of India tasked with overseeing the Unified Payments Interface (UPI) platform. This platform is the cornerstone upon which leading payment applications such as Google Pay, PhonePe, and Paytm have been built.

Simultaneously, there are murmurs that Apple is courting HDFC Bank as a collaborator for the launch of the Apple Card in India. This development emerges as Tim Cook, Apple’s CEO, graced Indian shores for the inauguration of the company's maiden retail outlets under its direct ownership.

The company's foray into India's digital payments domain is underpinned by an indigenously crafted iteration of Apple Pay, which embraces UPI, facilitating payments through the scanning of QR codes as opposed to relying on NFC-based transactions via Payment Service Provider (PSP) applications.

Furthermore, the tech titan is considering incorporating FaceID, its facial recognition technology, for UPI authentication, although the specifics remain nebulous, including partnerships and an official launch date, which is speculated to be at least a few quarters in the offing.

However, the realm of UPI ecosystems may prove to be a formidable gauntlet for Apple Pay, given the preponderance of Android devices in India. With approximately 20 million iPhone users in India, Apple faces constraints in the form of Reserve Bank of India guidelines, which have led to the unavailability of credit card payments in the App Store, leaving UPI as the sole option for adding funds.

Consequently, Apple is presumably keen to synchronise the launch of Apple Pay with that of Apple Card, as part of its comprehensive strategy for India, a market of burgeoning significance.

Also Read: Is the Apple Card Coming To India?