The Apple Pay India launch is official: Apple Pay has launched in India, marking one of the biggest expansions of Apple’s payments service in years. The rollout begins with Axis Bank customers holding Visa and Mastercard credit cards, who can now add their cards to the Wallet app and tap to pay with iPhone or Apple Watch.
The launch comes just weeks before a major change to India’s digital payments landscape: a 0.4% merchant discount rate (MDR) on UPI transactions above Rs 2,000 takes effect on October 15, 2026.
Apple Pay India goes live
Apple’s Vice President of Apple Pay, Jennifer Bailey, confirmed the India launch, with Axis Bank as the first partner bank. Users can provision their Visa or Mastercard credit cards directly from their iPhone for Tap to Pay at contactless terminals.
More banks and card networks are expected to join in the coming weeks, widening Apple Pay’s footprint in one of the world’s largest smartphone markets.
The UPI MDR context
The timing is notable. From October 15, 2026, merchants will pay a 0.4% MDR on UPI transactions above Rs 2,000. The Supreme Court declined to grant an interim stay on the levy, though it has sought responses from the Centre, the RBI and the NPCI.
Person-to-person UPI transfers remain free, and the MDR applies only to merchant payments above the Rs 2,000 threshold.
What it means for you
For iPhone users, the Apple Pay India launch offers a new way to pay at stores using credit cards, separate from UPI. For merchants, the coming MDR means weighing the cost of UPI against card-based options. Our guide to credit cards vs debit cards breaks down the key differences.
In other tech news, Nvidia announced a record $150B buyback and a new AI safety platform, and here are the upcoming smartphone launches in India in October 2026.
Frequently Asked Questions
Which banks support Apple Pay in India?
At launch, Apple Pay is available to Axis Bank customers holding Visa or Mastercard credit cards. More banks and card networks are expected to be added in the coming weeks.
What is the new UPI MDR in India?
A 0.4% merchant discount rate (MDR) applies to UPI merchant transactions above Rs 2,000, effective October 15, 2026. Person-to-person UPI transfers remain free.
Did the Supreme Court block the UPI MDR?
No. The Supreme Court declined to grant an interim stay on the 0.4% UPI MDR, though it issued notices to the Centre, the RBI and the NPCI seeking their responses to the challenge.
Does Apple Pay work with UPI in India?
No. Apple Pay in India works with credit cards through the card networks' contactless rails, not UPI. UPI payments continue to work through apps like Google Pay, PhonePe and Paytm.
