After a five-year hiatus brought on by disputes with the Reserve Bank of India (RBI), Apple is quietly beginning to accept debit and credit card payments in India again. The move appears to pave the way for the long-awaited launch of Apple Pay in the country.
The pause followed RBI rules governing online recurring payments, alongside the introduction of a card tokenization framework that reshaped how payment data is handled in India. Billers were required to notify users 24 hours in advance of any recurring payment and allow them to cancel it.
To comply, Apple needed to adjust its systems so that tokenized payment data would be processes and stored in India rather than in the U.S.
Complying with the Tokenization Rules
According to MoneyControl, Apple has now complied with the RBI’s tokenization framework, and has begun accepting card payments for App Store and iCloud purchases. The company is reportedly testing the updated payment system with a limited group of users, with a broader rollout expected over the coming months.
India had also introduced more flexible authentication rules. While digital transactions have long required a PIN or two-factor authentication, the country now permits biometric authentication for certain UPI transactions within prescribed limits. Because Apple has supported biometric authentication in its payment system for years, the change could reduce friction for future Apple Wallet users.
Rolling Out Apple Pay
The change comes as Apple continues laying the groundwork for Apple Pay in India. Earlier this year, the company indicated plans to bring the service to market, initially targeting iPhone users with Visa and Mastercard cards. Indeed, iPhones now account for roughly 10% of India’s smartphone market, giving Apple a base for contactless payments alongside its expanding presence in the country.
Apple has also reportedly been in discussions with ICICI Bank, HDFC Bank, and Axis Bank to broaden support beyond existing card networks. While commercial negotiations, including transaction fees, have been a sticking point, Apple’s renewed ability to process card payments suggests key technical and regulatory hurdles are now being address.
Together, the developments point to Apple gradually aligning its payments infrastructure with India’s requirements, even as the timing and scope of a broader rollout remain uncertain.
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