Apple’s plan to launch its payment service in India is facing delays due to a disagreement over transaction fees. While the tech giant seeks a 15-20 basis point fee on card transactions, Indian lenders argue this is too high for the local market, where payment margins are typically much tighter.
Apple is looking to bring its digital payments service, Apple Pay, to the Indian market, but the rollout is currently facing delays due to commercial disagreements with local banks. The tech giant has been in discussions with major credit card issuers to facilitate its launch, but the two sides are struggling to agree on the fee structure for every transaction processed through the platform.
At the heart of the issue is Apple’s reported demand for a 15-20 basis point (bps) fee on each credit card transaction. In the global market, Apple often commands such fees for its payment services. However, Indian banks are pushing back, arguing that this rate is unsustainable given the domestic payment ecosystem. In India, credit card processing fees are generally much lower, often hovering around 5 basis points. Furthermore, the Indian digital payments landscape is dominated by the Unified Payments Interface (UPI), which operates on a zero-cost model for transactions, creating a massive contrast between Apple’s expected revenue model and the realities of the local market.
Unlike the widespread use of UPI, which relies on mobile numbers and QR codes, Apple Pay would initially function primarily through Near Field Communication (NFC) technology, supporting credit and debit cards. This means Apple Pay would compete directly with established platforms like Google Pay, PhonePe, and Paytm, but with a different cost structure. For banks, paying a higher fee to a third-party technology provider like Apple could compress their already thin margins on payment services.
While Apple has made progress on technical and regulatory requirements, such as data localization and security features like biometric authentication, the commercial deadlock remains a significant hurdle. Because of this, the expected launch timeline has slipped, with current market expectations suggesting a delay until late 2026 or beyond.
The success of Apple Pay in India will depend heavily on whether the company can find a middle ground with Indian lenders. If the fee issue is not resolved, the company may struggle to find partners willing to support the service at the requested terms. Investors and industry observers will be watching for updates on potential partnerships, any changes to the proposed fee structure, and a confirmed timeline from the company or its banking partners.