Apple Pay India launch expected soon: How will it compare with UPI?

Apple Pay could finally be heading to India, with a report suggesting that Apple's payment service may launch in the country around October this year. Its arrival would put the service in direct comparison with the Unified Payments Interface (UPI), which has become a major part of India's digital payments ecosystem.

Apple's growing iPhone user base in India has also created a larger potential market for its payment service. While Android continues to dominate the country's smartphone market, Apple has steadily expanded its presence.

How does Apple Pay work?

Apple Pay uses Near Field Communication (NFC) to enable contactless payments. Users can add supported cards to their Apple devices and make payments by tapping the device at compatible point-of-sale terminals.

The service uses tokenisation, meaning the actual card number is not shared with merchants during transactions. Payments can also be authorised using Face ID or Touch ID.

Apple Pay vs UPI

UPI, on the other hand, is a payment network operated by the National Payments Corporation of India (NPCI) in partnership with banks. It allows users to make payments through mobile numbers, bank-linked accounts and QR codes across multiple apps.

Apple Pay is designed primarily around cards and NFC-based payments, while UPI is directly linked to bank accounts.

Apple Pay works only on Apple devices, whereas UPI is available across Android, iOS and even feature phones. Apple Pay can also work without an active internet connection for some in-store transactions, while UPI payments generally require internet access.

Privacy is another difference. Apple Pay uses device tokenisation so merchants do not receive the user's actual card number. UPI transactions instead use a Virtual Payment Address (VPA).

Why has Apple Pay taken so long?

Apple Pay has been absent from India despite the country's rapid adoption of digital payments. One possible reason is the size of Apple's device user base, as the service is restricted to Apple products.

The expected launch comes as Apple continues to expand its presence in India's smartphone market.

Will Apple Pay work on Android?

Apple Pay is built around Apple's own devices and ecosystem. There is currently no indication in the provided information that Apple plans to bring the service to Android phones in India.

If launched, Apple Pay would give iPhone users another payment option alongside the UPI services they already use.