Apple has reinstated credit and debit card payments for its Indian App Store and iCloud services after a five-year gap. The change follows the company’s compliance with Reserve Bank of India mandates regarding card tokenisation and data localisation. This update expands payment choices for Indian users beyond UPI and net banking.
Apple has begun the process of restoring credit and debit card payments for its digital services in India, including the App Store and iCloud subscriptions. This update, which is currently undergoing a limited rollout, marks a return to traditional card transactions after the company stopped supporting them in 2021. For the past five years, Indian customers have primarily relied on UPI and net banking to make purchases within the Apple ecosystem.
RBI Compliance and Data Localisation
The shift in payment strategy follows the Reserve Bank of India’s (RBI) implementation of strict card tokenisation and data localisation rules. The RBI framework requires that merchants no longer store actual card numbers, a measure designed to enhance transaction security. Instead, sensitive card details are replaced by a unique digital token. Additionally, the regulatory requirements mandate that all payment data related to Indian transactions be stored on servers located within India. Apple’s decision to re-enable these payments indicates that its technical infrastructure has been updated to meet these local standards, ensuring that tokenised data remains inside the country.
Impact on Apple’s Digital Services
For Apple, this move is a necessary step to reduce friction for its users in the Indian market. By moving away from a reliance on UPI and net banking, the company simplifies the payment process for a wider base of consumers. This is particularly important for the growth of its digital services, which rely on recurring revenue from iCloud subscriptions and app purchases. While Apple continues to expand its physical presence in India through retail stores and local manufacturing, its digital services ecosystem remains a critical focus for increasing revenue per user.
Broader Strategic Context
The alignment with RBI policies is often viewed as a prerequisite for larger-scale financial initiatives in India. Tech companies operating in the country are increasingly required to ensure that their data storage and payment processing methods are fully compliant with local laws to avoid operational hurdles. By integrating with local card networks and adhering to tokenisation mandates, Apple strengthens its regulatory standing. Investors may track how this change affects overall transaction volumes and customer retention within the Indian app ecosystem in the coming quarters. The next key update will be the transition from the current limited test phase to a full-scale rollout across all Indian user accounts.