Will Apple Pay Replace UPI? 24 Billion Payments a Month Say Otherwise

Apple Pay reached India on 29 September 2026. By evening, half the internet had declared UPI finished.

Hold on. Let me show you what actually launched, and what UPI did in the very same month.

The short version

• Apple Pay is live, but only for eligible Axis Bank credit cards on Visa and Mastercard. No RuPay, and no UPI at launch.
• HDFC Bank, ICICI Bank and SBI Card are not on board yet. Talks on commercial terms are continuing.
• Apple reportedly wants 0.15 to 0.20% per transaction. Some banks pushed for about 0.10%.
• UPI processed 24.07 billion transactions worth ₹29.37 lakh crore in September 2026.
• They are not really rivals. One is a tap for card holders. The other is the rail the country already runs on.

What actually launched

Source: TechCrunch, 29 Sep 2026; ChannelIAM, 4 Oct 2026; MediaNama citing Economic Times, Aug 2026.

Now the size of the audience. Axis had about 16.26 million active credit cards in July 2026, out of roughly 122.9 million credit cards in India (tech-ish, Sep 2026). Apple Pay's launch audience is only those Axis card holders who also use an iPhone or Apple Watch.

The fee everyone is whispering about

Before launch, reports said Apple wanted 15 to 20 basis points (0.15 to 0.20%) on each eligible credit card transaction. Some issuers pushed for about 10. The same report said the fee would come out of the interchange banks already earn, not as an extra charge on you or the shopkeeper.

That was the position before launch. I don't know the final terms Axis agreed.

Now look at UPI

Side by side

Three people, three outcomes

• Priya has an iPhone and an Axis Visa credit card. At a store with a contactless terminal, Apple Pay works.
• Karan has an iPhone and an SBI Card. Apple Pay isn't available for him at launch, so he keeps using UPI or his physical card.
• Sharma ji runs a kirana with a printed QR. His customers use all kinds of phones. UPI reaches all of them. Apple Pay reaches only those with an eligible card, and only if he has a terminal.

Where Apple Pay genuinely wins

Express Card mode, which works even when the phone battery is dead. Biometric authorisation. And Apple says it does not store your card number on its servers or share it with merchants.

Where UPI wins

Reach, zero extra hardware beyond a QR code, instant bank to bank settlement, and free person to person transfers.

What about "pehle free, phir charges"?

For UPI, that story is real. Merchant fees were zero from 2020. From 15 October 2026, regular merchants pay 0.4% on payments above ₹2,000. Even so, about 96% of transactions stay outside it (Tech Portal, citing CareEdge). Our full UPI MDR guide has the details.

For Apple Pay, will users be charged later? I don't know. I found nothing that says so.

My honest take

Apple Pay and UPI are not fighting the same fight. Apple Pay makes cards easier to use. UPI is where almost everyone already pays.

The thing worth watching is not Apple Pay. A LocalCircles survey found that 53% of users said they would move away from UPI for payments above ₹3,000 if merchant charges were passed on to them. Whether cards, Apple Pay included, pick up some of that, I can't say. I don't know.

FAQs

Is Apple Pay available in India?

Yes, since 29 September 2026, for eligible Axis Bank cards.

Which banks support it?

Only Axis Bank at launch. HDFC, ICICI and SBI Card are not on board yet.

Does it support UPI or RuPay?

Not at launch. UPI support was reported to await NPCI approval.

Will Apple Pay replace UPI?

Nothing in the launch points that way. UPI handled 24.07 billion transactions in September alone.

What commission does Apple want?

Reportedly 0.15 to 0.20% per transaction. Some banks pushed for about 0.10%.

Will I pay extra to use it?

Pre-launch reports said the fee comes from existing card interchange, not an extra charge on users or merchants. I don't know the final terms.

How big is UPI compared to cards?

UPI was 85% of India's digital payments by volume in FY26. India had about 122.9 million credit cards in July 2026.

Where can I use UPI abroad?

UAE, Singapore, France, Mauritius, Bhutan, Nepal, Sri Lanka and Qatar.

Should shopkeepers buy new machines for Apple Pay?

It works at contactless NFC terminals. Ask your card machine provider whether yours accepts contactless before buying anything.

Sources: TechCrunch (29 Sep 2026); ChannelIAM (4 Oct 2026); MediaNama citing ET (Aug 2026); Business Standard; StartupTalky; EcoNiti; tech-ish; PIB (Dec 2025). Position as of 7 October 2026. Terms and availability may change.