Apple Pay in India Gains Traction as HSBC Explores Bank Tie-Up

HSBC India is in discussions to join Apple Pay by FY27-end as its second banking partner, while other lenders evaluate commercial terms and customer demand for contactless payments.

Apple Pay is exploring an expansion of its banking partnerships in India, with HSBC India reportedly in discussions to join the digital payment platform by the end of the 2026–27 financial year. The move could make HSBC the second banking partner after Axis Bank, which supports the service following its September 2026 launch in the country.

According to reports, several major Indian lenders are also exploring partnerships with Apple as the technology company seeks to expand the availability of its contactless payment service. However, negotiations remain focused on commercial arrangements, particularly the share of interchange income that Apple receives from card transactions.

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HSBC's potential entry comes as the bank strengthens its digital payment offerings. Reserve Bank of India data show that HSBC has approximately 1.02 million credit cards in circulation as of September 2026. Its integration with Apple Pay would allow eligible cardholders to make contactless payments using compatible Apple devices at supported merchant terminals.

Other lenders are also considering joining the platform. Kotak Mahindra Bank Managing Director and CEO Ashok Vaswani says the bank could eventually become part of the Apple Pay ecosystem, depending on customer demand. He indicates that the partnership could materialise over the next couple of quarters.

The commercial terms remain an important factor in the expansion. Banks are evaluating Apple's proposed share of interchange income, which issuing banks receive when customers make card payments. In several international markets, Apple reportedly charges around 15 basis points per credit card transaction, although the rate varies by market and individual agreements. The fee comes from the interchange income rather than being charged separately to customers.

Apple Pay allows users to add eligible credit cards to Apple Wallet and make payments by tapping an iPhone or Apple Watch at compatible point-of-sale terminals. The service uses near-field communication technology and authenticates transactions through Face ID, Touch ID or a device passcode. It operates in more than 90 markets and has partnerships with over 11,000 banks and payment network partners worldwide.

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In India, the service initially supports eligible Axis Bank Visa and Mastercard credit cards. RuPay cards and Unified Payments Interface transactions are not supported at launch. The expansion to additional banking partners could increase payment options for Apple users and broaden the platform's presence in India's digital payments market.