Apple Pay India Launch Delayed: Major Indian Banks Bargaining Hard Over Commission — Know How It Will Impact The Fintech Market

The India launch of US based tech giant Apple’s fintech service, Apple Pay has been delayed as major banks of India are bargaining hard over payment commissions. The company is currently in negotiations with Indian banks over the commission structure it wants for giving banks access to its payment gateway. The talks are dragging on, and the fee gap between what Apple expects and what Indian banks are willing to pay is a big reason why. 

What Apple Charges vs What Indian Banks Will Pay 

Apple Pay typically charges banks between 0.15 percent and 0.20 percent of each transaction as a settlement fee globally. That is the standard rate in most countries where Apple Pay already works. 

But in India, things work very differently. Credit card transactions in India happen at around 5 basis points, which is a fraction of what Apple is asking. And UPI, which is the payment system that most Indians use every single day for everything from groceries to cab rides, is completely free. Zero cost. 

So when Apple walks into negotiations asking for 15 to 20 basis points, Indian banks are essentially being asked to pay three to four times what they currently spend on card payments. Unsurprisingly, the banks are not happy about it. 

“In India, payment firms operate on a blended rate for credit card payments at around 5 basis points, much lower than international standards,” a banker told The Economic Times. “For Apple Pay, the standard pricing hovers around 15 to 20 basis points.” 

Which Banks Are in Talks 

Despite the fee standoff, negotiations are still going on. According to Bloomberg, Apple is in active discussions with three of India’s biggest lenders, ICICI Bank, HDFC Bank, and Axis Bank, as it targets a possible launch around mid to end of 2026. 

Media reports also suggest that Apple is separately negotiating fee structures with card issuers, including global networks like Visa and Mastercard, to bring the full Apple Pay experience to Indian users. Neither Apple India nor the card networks responded to queries on the matter. 

Why Apple Pay Has Not Launched Yet 

The fee fight is not the only thing holding Apple back. India has had some unique regulatory requirements that made things complicated for years. 

Until October 2025, Indian payment rules did not allow private companies to use biometrics like Face ID or Touch ID for approving transactions. Since Apple Pay is built around exactly that kind of authentication, it was a fundamental mismatch. That regulatory barrier has now been lifted, which is why talks have picked up again. 

There is also the question of data storage. India’s central bank requires that all payment-related data be stored locally within the country. For Apple, a company that tightly controls its own systems, that was another hurdle to cross. 

What Apple Pay Will Look Like in India at Launch 

When Apple Pay does arrive, do not expect the full experience right away. The initial rollout is expected to cover only card-based contactless payments. That means iPhone and Apple Watch users will be able to tap and pay at NFC-enabled terminals using their credit or debit cards. 

UPI integration, which is what most Indians would actually need for day-to-day use, is likely to come later. Apple is reportedly in talks with NPCI, the body that runs UPI, but regulatory approvals for that could take much longer. 

Why This Matters for iPhone Users 

India is now one of Apple’s most important and fast-growing markets. Apple recorded its highest-ever quarterly shipments in India in the third quarter of 2025, reaching around 5 million units and entering the top five smartphone brands in the country for the first time. 

With so many iPhones now in Indian hands, the absence of Apple Pay is becoming more noticeable. Indian iPhone users who travel abroad or deal with international payments are already at a disadvantage compared to users in other markets. 

Until the fee dispute is resolved and regulatory approvals come through, Apple Pay remains on hold. For now, Indian iPhone users will have to keep relying on Google Pay, PhonePe, and Paytm for their daily payments. 

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