India is one of the countries having an abundant number of Apple iPhone users. Apple users in different countries like France, Italy, Hong Kong, Japan, the UK, the US, Russia, Taiwan, Switzerland, etc., are using Apple Pay as a contactless payment mechanism. However, the same can’t be said for Indian users.
The world’s largest technology company, Apple, has decided- they won’t be launching the cashless payment system, Apple Pay, in India, and that has made Apple users in India wonder- Why Apple Pay is not available in India?
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What is Apple Pay?
Apple Pay is a contactless payment technology specially meant for Apple devices. The idea behind the origin of Apple Pay was to make customers ditch the physical wallet and instead choose a more convenient option of carrying the debit and credit cards in the iPhones, and Apple watches themselves. So, that means the users can pay directly through their devices only.
3 Major Reasons Why Apple Pay is not available in India
Apple had earlier announced that Apple Pay would be UPI-based and would be providing contactless payment services across the country. However, there are certain regulatory roadblocks in India that made Apple take a step back, and the technology company is waiting to see how these roadblocks would shape up.
1. Local storage of data
In 2018, RBI had announced that all the payment systems should store data of the Indians in India for better security and safety. Apple, at that time, was planning to set up a UPI-based payment system in India. However, for that, the company needed to partner with a company based out of India or set up storage facilities in India.
The NPCI accepts biometrics and data only when they are validated by UIDAI, a government agency, but Apple, on the other hand, stores data within the device through Face ID and Touch ID, which cannot be validated with the external database. That forms a major reason why Apple Pay is not available in India.
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2. UPI Integration
The payment through Apple Pay is contactless. This means there is no need for a PIN or OTP. All users need is a fingerprint authorization to access the payment. However, in India, the NPCI has made it mandatory to have a 4 or 6-digit PIN to authorize the payments, and no biometric-access payments are allowed as of now.
That means Apple would have to rely majorly on its banking partners which may not be ideal for them. This is another reason why Apple Pay is not available in India.
3. Highly competitive digital payment space
The digital payment space in India is at its peak. With different payment options like Google Pay, PhonePe and Paytm already dominating the market, the competition is a bit tough for Apple Pay as it has entered the market late.
To establish a strong customer base, Apple would have to spend huge expenses. Moreover, users don’t prefer to change their payment modes that frequently. This again is a challenge for Apple and answers the question of why Apple Pay is not available in India.
Final thoughts
Apple is strengthening its presence in India. With iPhones and Mac enhancing their strong product value in the market, it would just be a matter of time to see Apple Pay as a part of the payment systems in India.
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Surbhi Verma
Engineer by Degree, Writer by Profession. I have tried my hands on different genre of writing only to end up finding technology to be my forte.