Apple aims to bring Apple Pay to South East Asians, starting with India.
Apple is looking to expand its payment service, Apple Pay, to South East Asia, with India as its first target. The company has resumed discussions with Indian authorities and officials to bring Apple Pay to the Indian market, which is already dominated by Walmart's PhonePe, Google's GPay, and Paytm. During his visit to India, CEO Tim Cook met with Indian bankers, indicating Apple's renewed efforts to launch Apple Pay in the country.
Apple aims to bring Apple Pay to South East Asians, starting with India. Developing a Localized Version of Apple Pay
Apple is currently developing a payment service that will be compatible with India's Unified Payments Interface (UPI), overseen by the National Payments Corporation of India (NPCI). This will allow iPhone users in India to initiate UPI transactions by scanning QR codes, without relying on third-party payment service providers. Apple aims to bring Apple Pay to South East Asians, starting with India.
The company has been engaging with Indian authorities and officials, indicating its strong commitment to entering the Indian market. While there has been no official comment from the company, sources familiar with the discussions have confirmed that Apple is in talks with NPCI for the launch of Apple Pay in India.
Apple has reportedly discussed the integration of Face ID for UPI authentication on iPhones during recent discussions. This move would provide users with increased security for their transactions. However, a final decision on launch partners and a specific launch date has yet to be made, indicating that the official launch of Apple Pay in India may still be a few quarters away.
Adapting Apple Pay to the Indian Market
Apple has a relatively small consumer base in India, where the majority of smartphones run on Android. However, with the opening of its first store in the country, the tech giant has laid the groundwork for expanding its services. Apple Pay, a contactless payment solution that replaces physical cards and cash, was initially launched in 2014. It will be customized to integrate with the local UPI system developed by NPCI in India, which enables users to make instant bank-to-bank payments through QR codes or phone numbers. The UPI system has experienced significant growth, with a record-breaking monthly transaction count of 8.7 billion. The entry of Apple Pay into the Indian market could offer consumers a new and convenient payment option, despite the existing dominance of other payment services.
Engaging with Key Indian Banks and Regulators
Apple is working closely with major Indian banks and regulators, including NPCI, to ensure a successful launch of Apple Pay in India. The company aims to integrate Apple Pay with NPCI’s Rupay platform or UPI by leveraging the Rupay Credit Card, thereby offering seamless QR code scanning and UPI transactions to Indian consumers without the need for external third-party apps. Apple also plans to incorporate its Face ID technology to provide enhanced security during transactions.
Although Apple Pay's entry into the Indian market may face challenges, such as competition from established players like Google and Samsung, the company is committed to offering a customized version of Apple Pay that caters specifically to Indian consumers.
According to Bankmycell, as of December 2022, Apple's market share in the Indian mobile phone market was approximately 3.54%. However, with the increasing popularity of digital payments in India, Apple Pay could potentially attract consumers seeking a secure and convenient payment solution.
As talks progress and partnerships are finalized, Apple Pay has the potential to become a viable and sought-after payment option for iPhone users in India. The launch of Apple Pay would not only expand Apple's services in India but also contribute to the growing popularity of digital payments in the country.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.