Apple Pay India Launch Stalls Over Bank Fees

Apple Pay's planned launch in India is currently stalled due to ongoing disputes with major banks over transaction commissions. Apple is reportedly seeking 20 basis points per transaction, while large lenders such as HDFC Bank, SBI Cards, ICICI Bank, Axis Bank, and Kotak Mahindra Bank are only willing to offer 15 basis points, which aligns with Apple's global commission structure.

Negotiations are proving difficult, with Apple positioning its service as a "premium play" in India's market, which is heavily dominated by Android smartphones. This financial disagreement is a primary reason for the delay, even though the necessary technology infrastructure is largely in place and could technically support a launch at any time.

Furthermore, Apple has faced significant regulatory hurdles, including India's Reserve Bank of India's (RBI) data localization requirements and mandatory system audit reports. While Apple initially sought exemptions, it is now working to comply by storing tokenized payment data on-device and with card networks rather than overseas. Earlier, mandatory two-factor authentication requirements also made the market less attractive for Apple Pay.