Apple Pay Plans India Entry With Axis Bank

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Apple is preparing to launch Apple Pay in India next month, initially with Axis Bank (

) credit cards, according to people familiar with the matter. The rollout would give Apple entry into one of the world's largest digital-payments markets. What happened? Apple Pay allows iPhone users to make contactless payments using tokenised card details stored on their devices. Axis Bank is expected to be Apple's first banking partner in India. Apple is also in discussions with HDFC Bank and ICICI Bank, although commercial terms have not been finalised with them. Why does it matter? India's digital-payment market is already heavily dominated by UPI. UPI accounted for 84% of digital transaction volume, according to Reuters. Apple Pay would initially enter through the card ecosystem rather than directly competing with UPI-based payments. My view The more interesting part for Axis Bank is the potential to make its credit cards more useful within Apple's installed device base. Axis had around 16.26 million active credit cards in July, according to RBI data. However, the commercial value will depend on transaction volumes and the economics agreed between Apple and the bank. What I am watching next The key triggers are the actual launch date, number of supported Axis cards, transaction volumes and Apple's agreements with other banks. These will indicate whether the initial partnership develops into a broader payments relationship. No Recommendations Source: The Hindu (News may be speculative) Disclosure: I, my entity, associates or relatives don't have any holding, position or other material interest in Axis Bank Limited.