According to two people with knowledge of the situation, Apple is planning to speak with NPCI soon about launching its payments service Apple Pay in the South Asian market. Apple is attempting to enter a crowded market that is dominated by Walmart’s PhonePe, Google’s GPay, and Paytm.
According to sources with knowledge of the situation, the business is developing a localized version of Apple Pay that integrates with UPI, a well-liked payment method in the South Asian market, which chief executive Tim Cook discussed with bankers on a recent trip to India. The UPI platform is managed by NPCI, a special subsidiary of India’s central bank, Reserve Bank of India.
According to the sources, who asked to remain anonymous because they were discussing private things, Apple wants Indian iPhone users to be able to scan QR codes and start UPI transactions without using any PSP apps.
23.4k posts and I still can’t find a single one that says what #ApplePay is for pic.twitter.com/YCWRPRKN1D
— inevitablenice (@ilymfe) August 8, 2023
A request for comment sent to Apple on May 24 received no response. There hasn’t been any prior information about Apple Pay’s resuming negotiations with India.
The iPhone manufacturer has had several discussions with the authorities about introducing Apple Pay over the years. In April of this year, it opened its first set of retail outlets in India. Company leaders announced to the media more than six years ago that Apple intended to introduce Apple Pay across the nation—but they never followed through.
One source with knowledge of the situation claims that Apple recently brought up the possibility of using Face ID for UPI verification on iPhones during meetings with select Indian authorities.
The insiders emphasized that the firm has not yet made a final choice on its partners or launch date, indicating that a launch is most likely still several quarters away.
Because India is a small market for Apple, the potential introduction of Apple Pay there is unlikely to upend the ecosystem’s established players, who handle more than 8 billion transactions monthly on the UPI network. Android is installed on more than 90% of all smartphones in India.