Pricing Dispute Delays Apple’s India Payment Service
The roll-out of Apple Pay in India is delayed due to a commercial disagreement regarding transaction commissions. Apple is reportedly seeking a commission of 20 basis points (0.2%) per transaction from partner banks, while major Indian card issuers are offering a maximum of 15 basis points.
Indian banks argue that a 20 bps commission is difficult to sustain within the domestic payment landscape. With India’s Unified Payments Interface (UPI) operating at zero fees for merchants and typical card transaction margins under pressure, lenders are cautious about sharing transaction fees on premium digital wallets.
Technical and Regulatory Framework Complete
The commercial dispute remains the primary obstacle, as technical and regulatory integrations are largely complete. Apple has addressed local data residency requirements by tokenizing and storing payment credentials locally. Additionally, the Reserve Bank of India (RBI) has approved biometric authentication (like Face ID) as a valid additional factor of authentication, clearing the path for the service once commercial terms are finalized with banks like HDFC and ICICI.
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