Apple Inc. (AAPL.US) is in intensive discussions with three major banks in India, planning to launch Apple Pay in the market with a population of 1.4 billion.

According to informed sources, Apple Inc. is in talks with major banks in India and global card organizations to prepare for the launch of Apple Pay in India, the world's most populous country. The sources indicated that Apple Inc. is negotiating with ICICI Bank Limited Sponsored ADR, HDFC Bank Limited Sponsored ADR, and Axis Bank, planning to launch its payment service in India around mid-2026. While the timeline is subject to change, the negotiations suggest that the launch is imminent. Apple Inc. is also in discussions with payment networks such as Mastercard and Visa regarding this plan. The launch in this plan marks another step in Apple Inc.'s expansion in the Indian market, which has a population of 1.4 billion and a rapidly expanding middle class. Despite the dominance of lower-priced Android devices in the region, Apple Inc. has a relatively small market share, but its increased manufacturing and retail presence in India has helped it make progress. Apple Pay in India is expected to support the India's national Unified Payments Interface (UPI) as well as card-based payments. UPI allows Indian customers to make instant transfers and pay bills, dominating the digital payment space in India. Competitors such as Google Pay from Alphabet Inc. Class C, PhonePe from Walmart Inc., global participants like Amazon.com, Inc., as well as local companies like Paytm, already operate digital payment platforms in India. The Reserve Bank of India set new rules at the end of last year, allowing biometric authentication such as fingerprints or facial recognition for digital payments. India previously relied on one-time passwords sent via SMS for identity verification. Apple Pay relies on Face ID or Touch ID to approve offline contactless payments, website, and in-app purchases. With over 750 million smartphone users, affordable mobile data, and national-level promotion, India is one of the fastest-growing digital payment markets globally, providing Apple Inc. with a potential entry point to increase its service revenue in the region. It is reported that Apple Inc. will take a cut from Apple Pay transactions. Given the prevalence of mobile payments in the region, the launch of Apple Pay could boost demand for its hardware. The feature is built into the Apple Watch, iPhone, iPad, and Mac. Apple Inc.'s market share in smartphone sales in India has steadily increased to around 10%, with significant room for further growth. Apple Inc. is also positioning India as a key manufacturing base for exporting iPhones to the U.S., diversifying its manufacturing footprint to reduce reliance on China. This move helps protect its domestic market customers from price increases due to tariffs imposed by the Trump Administration. At the same time, Apple Inc. is rapidly expanding its retail business in India. This week, Apple Inc. opened its sixth store in Mumbai, India. Apple Inc. CEO Tim Cook has repeatedly stated that the rapid growth in sales in India makes it a key lever for overall growth.