Is the Apple Card Coming To India?

Apple is reportedly in discussions with banks and regulators to bring its popular credit card, the "Apple Card," to India. According to sources familiar with the matter who told this to Moneycontrol, Apple CEO Tim Cook met with HDFC Bank CEO and MD Sashidhar Jagdishan during his visit to India in April, indicating the company's interest in entering the Indian market with its credit card offering.

The move comes when mobile payments are on the rise in India, and tech giants like Google, Amazon, and Samsung are actively exploring opportunities in the financial services sector with their payment apps.

No Special Treatment to Apple

Sources suggest that Apple has also engaged in discussions with the Reserve Bank of India (RBI) regarding the details and regulations surrounding the Apple Card. However, the RBI has reportedly asked the company to follow the standard procedure for co-branded credit cards without leeway, which could mean some form of compromise for Apple.

"Apple works only with the biggest and the best, hence the discussions with HDFC Bank. While a lot goes into building partnerships, banks and other brands would be willing to sweeten the deal terms to get Apple on board," said one of the sources told Moneycontrol.

Apple Card Benefits

The Apple Card, currently available in the United States, was launched in collaboration with Goldman Sachs and Mastercard in 2019. The Apple Card, known for its sleek titanium design, is positioned as a high-end offering for customers.

The Apple Card, integrated with Apple Pay, offers various benefits, such as a 4.15% annual interest rate, no annual fees, and cashback rewards on Apple products and services. In the US, Apple also provides additional cashback incentives for using the card through Apple Watch or iPhone, including 2% daily cashback and 3% cash back at major merchants.

Over the past few years, India has been a key focus for the company, with iPhone sales growing rapidly. If a significant portion of these transactions can be directed through the Apple Card, it could positively impact the company's overall revenue.

Earlier this year, Apple also unveiled exclusive retail stores in Delhi and Mumbai, further emphasising its commitment to the Indian market. Additionally, Apple has been shifting a significant portion of its iPhone production to India and is poised to become Apple's third-largest market after the US and China.

Challenges for Apple

Apple does not accept card payments in India, as most App Store purchases are facilitated through the Unified Payments Interface (UPI).

Apple will need to adhere to the co-branded credit card regulations in India with regard to card design and regulations. Unlike in the US, where the Apple Card prominently features Apple's logo and customer names, the rules in India dictate that the bank takes the front, with the Apple logo and customer names likely appearing on the backside of the card.

While discussions are ongoing, it remains to be seen when Apple will officially launch the Apple Card and whether it will be able to successfully navigate the regulatory requirements in India.

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