Apple (AAPL.US) is in intensive negotiations with India's three major banks, planning to launch Apple Pay in the market of 1.4 billion people.

Apple (AAPL.US) is in talks with major Indian banks and global card networks to prepare for the launch of Apple Pay in India, the world’s most populous country.

Sources say Apple is negotiating with the Industrial Credit and Investment Corporation of India, HDFC Bank, and Axis Bank, with plans to launch its payment service around mid-2026. The timeline is still uncertain, but negotiations indicate the launch is getting closer. Apple is also discussing the plan with payment networks like Mastercard and Visa.

This planned launch marks another step in Apple’s expansion into the Indian market, which has a population of 1.4 billion and a rapidly growing middle class. Although Apple’s market share remains small in the region dominated by lower-cost Android devices, its increased manufacturing and retail presence in India has helped it make progress.

Apple Pay in India is expected to support the National Payments Corporation of India’s Unified Payments Interface (UPI) and card-based payments. UPI allows Indian customers to transfer money instantly and pay bills, dominating the digital payments space in India.

Competitors like Google Pay, PhonePe (owned by Walmart), Amazon, and local companies such as Paytm are already operating digital payment platforms in India.

The Reserve Bank of India introduced new regulations at the end of last year allowing biometric authentication, such as fingerprint or facial recognition, for digital payments. Previously, India mainly relied on SMS-based one-time passwords for authentication.

Apple Pay relies on Face ID or Touch ID to authorize contactless offline payments, as well as in-app and website payments.

With over 750 million smartphone users, affordable mobile data, and government support, India is one of the fastest-growing digital payment markets globally, providing a potential revenue stream for Apple’s services in the region. Apple is expected to earn a commission from Apple Pay transactions.

Given the widespread adoption of mobile payments, the launch of Apple Pay could boost demand for Apple hardware. The feature is integrated into Apple Watch, iPhone, iPad, and Mac. Apple’s market share in India’s smartphone market has steadily grown to about 10%, with significant room for further growth.

Apple is also positioning India as a key manufacturing hub for iPhones destined for the U.S. market, diversifying its supply chain to reduce reliance on China. This move helps protect its domestic customers from price increases caused by tariffs under the Trump administration.

Meanwhile, Apple is rapidly expanding its retail presence in India. This week, Apple opened its sixth store in Mumbai. CEO Tim Cook has repeatedly stated that rapid sales growth in India makes the market a crucial lever for overall growth.