Apple Pay debuts in India: how it works, features, and key limitations

Summary

Axis Bank credit card holders can now tap to pay using biometrics without PIN or OTP, though the launch excludes UPI integration and RuPay support.

For iPhone, iPad, and Apple Watch users in India, Apple Pay’s late-September rollout allows them to tap to pay directly via Apple’s native wallet, authenticating transactions through facial recognition or a fingerprint without needing a PIN or OTP at checkout.

Jennifer Bailey, vice president of Apple Pay and Apple Wallet, said at the launch in an update: “Apple Pay makes everyday payments with a card easy, secure, and private — from simply tapping to pay in stores without an extra app, PIN, or OTP to checking out online without repeatedly entering payment information.”

However, the feature is initially limited to Axis Bank-issued Visa and Mastercard credit card holders, though reports indicate Apple is in talks with other major domestic lenders. Beyond streamlining local transactions, the service benefits international travelers who previously had to depend on physical plastic cards in India, where local UPI QR codes cannot be accessed using foreign bank accounts. Here’s everything you need to know.

How does Apple Pay work?

To use Apple Pay, eligible Axis Bank Visa or Mastercard credit cardholders must first add their card to Apple Wallet, either directly or through the Axis Bank mobile app. Once added, the card can be used for in-store and online purchases wherever near field communication (NFC) payments are accepted. NFC is a short-range wireless technology that enables two electronic devices to exchange small amounts of data when placed in close proximity.

At physical stores, users double-click the side or home button on their iPhone to open the default card in Apple Wallet, authenticate using Face ID, Touch ID, or a passcode, and hold the device near the contactless reader. The transaction is processed through the underlying credit card, meaning the card's existing billing cycle, credit limit, reward points, interest terms, and foreign transaction fees continue to apply.

For online purchases, Apple Pay operates on participating websites and platforms that feature it as a checkout option. Users simply select Apple Pay and authenticate via biometrics to complete the payment.

The system relies on tokenization, ensuring the actual card number is never shared with the merchant. Instead, a device-specific token is transmitted, with biometric authentication verifying that the device owner initiated the payment. Rohit Mahajan, founder and chief executive officer (CEO) of Plutos ONE said, “Biometric authentication, when combined with tokenisation and transaction-specific security controls, can offer a strong layer of protection while making payments more seamless.” He cautioned, however, that biometrics are not a silver bullet: device theft, compromised accounts and fraudulent authorisation remain risks.

Is contactless payment new to India?