By Erick Apple Pay launched in the US in October 2014. I am an NRI, and I have been using Apple Pay to pay for stuff for a while now. It means I don’t have to physically carry my credit card (or cash) around when I leave the house, and it’s easier for me to pay for stuff online – akin to UPI but not needing a pin.
Now, there is reporting that Apple is having conversations with the Reserve Bank of India (RBI) and Indian banks to bring Apple Pay in India. If it goes through – the initial launch will be only for card-based contactless payments for tap-and-pay POS machines. And maybe online payments like the ability to pay on the App Store and websites that accept Apple Pay as a payment option.
But why has this not been launched yet in India, seeing as India is one of Apple’s biggest market today?
A couple of key reasons, which I have explained below very quickly.
Data Localization
The Reserve Bank of India requires all payments data to be stored only on servers located in India, which complicates Apple’s usual global infrastructure for handling tokens and transaction data. This raised both cost and design issues for a bespoke India setup. Apple Pay also involves tokenization of payments which as a system is not in line with RBI’s policy. This is a delicate balance between privacy and regulatory requirements. Apple wants its service to be extra secure, which it will have to compromise if it needs to meet the RBI’s requirements as they are now.
Biometric Authentication
Apple Pay relies on on‑device biometrics (Face ID/Touch ID) as the primary factor, which is a prioreitory device sensor. But the National Payments Corporation of India (NPCI) that governs digital payments in the country has insisted on PIN/OTP and only allowed biometrics if validated through Aadhaar/UIDAI, not through proprietary device sensors. Apple does not yet want its biometrics tied into Aadhaar or sent to government‑linked systems, and this created a policy clash.
No UPI integration
Even if it launches this year it won’t be integrated with UPI, which is the king of digital payments in India by a long way. It will initially focus on card based contactless payments at tap and pay POS.
Those who have used Apple Pay are used to its convenience. In effect, it’s choosing Apple Pay over Google Pay (G-Pay). Even today, given the chance I’d use Apple Pay over UPI just because it’s so easy. Maybe that’s why I don’t save a lot of money. Sigh.