Tech Desk: Apple Pay is reportedly gearing up for its long-awaited debut in India by October, almost a decade after initial discussions. However, iPhone and Apple Watch users should temper expectations, as the service is expected to launch without support for India’s ubiquitous Unified Payments Interface (UPI). This significant omission means Apple Pay will initially cater primarily to credit card users on Visa and Mastercard networks, potentially limiting its widespread appeal in a market dominated by UPI for everyday digital transactions.

The initial phase will enable contactless credit card payments via NFC-enabled terminals, allowing users to add eligible cards to Apple Wallet for secure transactions. While convenient for premium cardholders, the absence of UPI places Apple Pay at a disadvantage compared to established services like Google Pay and PhonePe, which have integrated UPI at their core. Apple still requires National Payments Corporation of India (NPCI) approval and a sponsor bank partnership to incorporate UPI, suggesting a delay for this critical feature.

Apple is currently negotiating transaction fees with Indian banks, seeking 15-20 basis points from card issuers, while some banks propose around 10 bps. The outcome of these discussions will likely influence card support at launch. Until Apple successfully integrates UPI, users heavily reliant on QR-code payments will likely continue using existing apps, making Apple Pay’s initial value proposition in India primarily a digital wallet for contactless credit card transactions.