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.

According to sources, Apple (AAPL.US) is in talks with major Indian banks and global card organizations 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 in India around mid-2026. The timeline is still uncertain, but negotiations indicate that the launch is getting closer. Apple is also discussing the plan with payment networks such as 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) as well as card-based payments. UPI allows Indian customers to transfer money instantly and pay bills, dominating the digital payments landscape in India.

Competitors like Google Pay, Walmart’s PhonePe, Amazon, and domestic companies such as Paytm are already operating digital payment platforms in India.

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

Apple Pay relies on Face ID or Touch ID to authorize contactless offline payments, as well as payments within websites and apps.

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 entry point for Apple to increase service revenue in the region. It is reported that Apple will earn a commission from Apple Pay transactions.

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

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

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