Apple in talks with ICICI, HDFC & Axis Bank to start payment service in India

Core Viewpoint - Apple Inc. is preparing to launch Apple Pay in India, aiming to tap into the country's rapidly growing digital payments market and expanding middle class, with discussions ongoing with local banks and global payment networks [12][2]. Group 1: Apple Pay Launch - Apple is in talks with Indian banks such as ICICI Bank, HDFC Bank, and Axis Bank to introduce Apple Pay around mid-2026 [12]. - The service is expected to support India's Unified Payments Interface (UPI), which is a dominant player in the digital payments landscape [3][12]. - The launch is part of Apple's strategy to increase its market share in India, which currently stands at about 10% of smartphone sales [9][13]. Group 2: Market Context - India, with a population of 1.4 billion and over 750 million smartphone users, represents one of the fastest-growing digital payments markets globally [8][13]. - The digital payments space in India is currently dominated by competitors such as Google Pay, PhonePe, and Amazon Pay, alongside local players like Paytm [7][12]. - Recent regulatory changes in India now allow biometric authentication for digital payments, which could enhance the user experience for Apple Pay [13]. Group 3: Manufacturing and Retail Expansion - Apple is using India as a key production base to export iPhones to the US, diversifying its manufacturing away from China [10][13]. - The company is rapidly expanding its retail presence in India, having recently opened its sixth store in Mumbai [11][13]. - CEO Tim Cook has indicated that sales in India are growing quickly, making it a crucial market for Apple's overall growth strategy [11].