UPI-powered Apple Pay, Apple Card could debut in India soon
What's the story
Tech giant Apple has been eyeing India's payment sector for a while. The company is now planning to enter the crowded space from two sides: Apple Pay and credit card. It is not the first time Apple has shown interest in launching Apple Pay, its payment service in the country. The credit card interest, however, is new.
Context
Why does this story matter?
India's stature in Apple's ecosystem has been growing for the past few years. As a result, the company has been increasing its footprint in the country. Its first-ever retail stores and increasing production are signs of that. Apple sees India's payment sector as the next frontier. If it manages to lure iPhone users to its payment services, it would be a massive win.
Apple Pay
Apple is planning to build localized version of Apple Pay
In India, UPI dominates the payment ecosystem. Therefore, it is not surprising Apple is planning to build a localized version of Apple Pay powered by UPI. The company will hold discussions with the NPCI and other authorities in the coming weeks. Apple wants its users to be able to use Apple Pay to scan QR codes and make UPI payments.
Discussions
Apple has had several discussions about Apple Pay in India
Over the years, Apple has held several conversations with Indian authorities about the launch of Apple Pay. However, nothing materialized from those discussions. This time, however, things could change. The company is yet to decide on its partners and launch date. Therefore, a UPI-based Apple Pay is most likely a long way down the road.
Credit card
Apple also wants to launch co-branded credit card in India
Apple is also in discussions to launch its own credit card called 'Apple Card' in the country. The company's CEO Tim Cook met with HDFC Bank's CEO Sashidhar Jagdishan during his India visit in April. The tech giant is planning to launch a co-branded credit card with HDFC Bank. According to Moneycontrol, the firm also held talks with the Reserve Bank of India (RBI).
Compromises
Company will need to make many compromises
Apple will have to make significant compromises to operate Apple Card in India. In the US, the Apple Card only has the company's logo and the customer's name on the front. The banking partners' names appear on the backside. In India, the regulations stipulate that the banking partners' names must appear on the front side. The bank leads the operation in India.
Importance
Currently, Apple does not accept card payments in India
Additionally, India's co-branded credit card regulations do not allow the bank's partner to store customer or transaction data. That's not the case elsewhere. However, Apple might still go ahead with it as it does not accept card payments in the country as of now. If Apple users start using Apple Cards for App Store and other transactions, that would add to the company's revenue.