Apple's long-awaited plans to bring Apple Pay to India have reportedly hit a roadblock, with negotiations between the company and major Indian banks stalling over commission structures. According to a new report by Moneycontrol, the Cupertino giant has already completed much of the technical groundwork needed for the service's rollout, but disagreements around commercial terms are now delaying the launch.
Apple Pay's India Launch Faces Fresh Delay over Bank Commission Dispute
As per the report, Apple Pay became technically viable in India after the Reserve Bank of India updated its Additional Factor Authentication (AFA) guidelines last year, paving the way for biometric authentication methods such as Face ID and Touch ID for card payments.
Sources cited by Moneycontrol claim that the infrastructure is largely ready and the service could theoretically launch quickly once banking partnerships are finalised.
However, India's top banks are reportedly resisting Apple's commission demands. Apple is said to be seeking a share of transaction revenue from credit card issuers, similar to arrangements it maintains in several international markets. Indian banks, on the other hand, appear reluctant to part with a portion of their already-thin payment margins, especially in a market heavily dominated by low-cost UPI transactions.
This development comes just months after reports suggested Apple Pay India launch timeline may be set for mid-2026. Apple Pay's India launch is expected to support both card-based contactless payments and UPI integration eventually. However, reports suggest the first phase could focus primarily on NFC-based card payments via Apple Wallet.
A successful Apple Pay rollout in India could heavily strengthen the brand's ecosystem lock-in by enabling seamless payments across its devices. Unless Apple and its banking partners reach a compromise on commissions, Indian users may have to wait longer before finally being able to tap their iPhones or Apple Watches to pay at stores.
