Apple Pay Rollout in India Delayed Over Bank Commission Standoff

Apple’s plans to introduce Apple Pay in India have been delayed as talks with major banks over transaction commissions remain unresolved, according to The Moneycontrol report.  

Apple Pay Launch Hinges on Bank Agreements 

The company has reportedly completed the technology integration required for the service, but commercial agreements are still pending. 

Apple is seeking nearly 20 basis points (bps) per transaction from partner banks. Large card issuers are understood to have offered around 15 bps, which is closer to the structure followed in several overseas markets. 

Apple is currently in discussions with major credit card issuers including HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and SBI Cards. 

RBI Guidelines Clear Earlier Hurdles 

Regulatory conditions that delayed Apple Pay’s entry into India have largely been addressed. The Reserve Bank of India’s updated additional factor authentication guidelines now allow biometric authentication for card transactions, including Face ID-based verification. 

Reports suggest Apple has also agreed to follow India’s data localisation rules. Tokenised payment data linked to Apple Pay transactions will reportedly remain stored on users’ devices and with card networks instead of overseas servers. 

Card networks including Visa, Mastercard and American Express have already complied with the RBI’s localisation requirements. 

Discussions Continue with Large Lenders 

Apple is seeking higher commissions by positioning Apple Pay as a service targeted at premium users. India’s smartphone market continues to be dominated by Android devices, which account for nearly 90% of the market. 

Some smaller banks are understood to have accepted the proposed commercial structure. However, larger lenders have reportedly not agreed to the terms so far. 

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Conclusion 

Discussions between Apple and leading banks are still underway over revenue-sharing terms linked to Apple Pay transactions. The launch timeline remains dependent on commercial agreements. 

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