Key Points
- Apple achieved its highest-ever iPhone shipments in India during 2025, reaching approximately 10% market share
- Middle-class adoption accelerated due to EMI options, exchange offers, and competitive pricing of older models
- India leads global digital payments through UPI, QR codes, and mobile wallets with millions of daily transactions
- Apple Pay launch anticipated in first half of 2026 following RBI regulatory approval process
- Service will enable secure payments using Face ID and Touch ID without storing card details on devices
- Expected to compete with established players like Paytm, PhonePe, and Google Pay in crowded payments market
Apple Inc. is finalising plans to launch its Apple Pay digital payment service in India within the next few months, sources familiar with the development confirmed Wednesday, marking a strategic milestone for the tech giant after its most successful year in the subcontinent. The company’s record iPhone performance in 2025, which saw Apple capture nearly 10% of India’s smartphone market, has created the critical mass of users necessary for a payments platform launch.
Industry data released this month reveals Apple shipped more iPhones in India during 2025 than in any previous year, fundamentally altering the company’s market position. The Cupertino-based giant has transformed from a niche luxury brand into a mainstream player, particularly in tier-2 and tier-3 cities, where expanding middle-class consumers have embraced the iPhone ecosystem through accessible financing options.
“The iPhone has democratised in India. What was once a status symbol for the elite is now within reach of upper-middle-class professionals, thanks to zero-cost EMI schemes, robust exchange programs, and strategic pricing of previous-generation models. Apple Pay becomes a natural extension of this ecosystem lock-in strategy.”
India’s digital payments infrastructure provides the perfect launchpad for Apple Pay’s debut. The country now processes over 100 million UPI transactions daily, with a total value exceeding ₹15 lakh crore each month, according to National Payments Corporation of India data. This massive volume, generated by everyone from street vendors to multinational retailers, demonstrates India’s unequivocal shift toward a cashless economy.
The timing appears strategically calibrated to maximise adoption among Apple’s growing user base. With an estimated 80-90 million active iPhone users in India as of December 2025, Apple now commands a critical audience that values seamless, secure digital experiences.
Apple Pay’s value proposition centres on privacy and convenience. Users can complete online purchases, pay metro fares, settle restaurant bills, and conduct everyday transactions without manually entering card details or sharing sensitive financial information with merchants. Authentication through Face ID or Touch ID adds a biometric security layer that distinguishes it from conventional payment apps.
The platform’s tokenisation technology replaces actual card numbers with unique device-specific codes, addressing growing consumer concerns about digital fraud and data breaches that have plagued some Indian fintech players. Apple’s stringent privacy policies, which prevent the company from tracking transaction details or storing purchase histories, could resonate strongly with privacy-conscious Indian consumers.
Regulatory approval remains the final hurdle. The Reserve Bank of India has been reviewing Apple’s application under the Payment and Settlement Systems Act, with final clearances expected within the current quarter. Apple must comply with RBI’s data localisation requirements, ensuring Indian transaction data remains within the country’s borders.
The payments landscape Apple Pay enters is intensely competitive. Paytm, PhonePe, and Google Pay collectively control over 85% of the UPI transaction volume, with deeply entrenched user habits and merchant networks. However, Apple’s premium user base, which exhibits higher average transaction values, presents a lucrative segment that competitors have struggled to monetise effectively.
“Apple users in India typically spend 3-4 times more on digital transactions than average Android users,” noted Ashish Sharma, fintech consultant at PwC India. “Even capturing 30-40% of the existing iPhone user base would make Apple Pay a significant player in high-value transactions.”
For Apple, India has evolved from an emerging market into its primary growth engine outside China. The confluence of record hardware shipments, expanding market share, and the country’s digital payments leadership creates an unprecedented opportunity to deepen ecosystem integration and unlock new revenue streams through transaction-based models.
