Even while Apple Pay is an excellent demonstration that we are living in the future, at least in terms of payment systems, what is it that has caused Apple to make the decision not to deploy Apple Pay in the country where it was first introduced? This will be revealed in this article.
India is one of the countries with a large number of Apple iPhone users, according to statistics. Apple Pay is a contactless payment system that is used by Apple customers in a variety of countries, including France, Italy, Hong Kong, Japan, the United Kingdom, the United States, Russia, Taiwan, and Switzerland, among others. The same cannot be said, however, for Indian Internet users.
As a result of Apple’s decision not to introduce its cashless payment system, Apple Pay, in India, the world’s largest technology corporation has left many Apple users in India scratching their heads, wondering why the system is not available in their home country.
What is Apple Pay?
Apple Pay is a contactless payment method that has been designed specifically for use with Apple devices. The original concept behind Apple Pay was to encourage customers to abandon their physical wallets and instead opt for the more convenient alternative of storing their debit and credit cards in their iPhones and Apple watches. As a result, users can only make payments directly through their mobile devices.
There are 3 primary reasons why Apple Pay is not accessible in India.
Apple had previously indicated that Apple Pay will be based on the Unified Payments Interface (UPI) and would provide contactless payment services across the country. Although certain regulatory barriers in India have caused Apple to take a step back, the technology company is keeping its fingers crossed to see how these roadblocks will turn out.
Highly competitive digital payment space
In India, the digital payment field has reached its zenith. Due to the fact that multiple payment methods such as Google Pay, PhonePe, and Paytm currently dominate the industry, Apple Pay faces stiff competition, especially given the fact that it entered the market late.
Apple would have to incur significant costs in order to build a substantial consumer base. Furthermore, users do not like to switch between several payment methods on a regular basis. This is yet another barrier for Apple, and it provides an answer to the question of why Apple Pay is not yet available in India.
Local storage of data
The Reserve Bank of India (RBI) announced in 2018 that all payment systems storing data of Indians should do so in India for greater security and safety. Apple had announced plans to establish a UPI-based payment system in India at the time of the announcement. The corporation, however, would have to partner with an Indian company or establish up storage facilities in India in order to accomplish this goal successfully.
NCPI accepts biometrics and data only when they are validated by UIDAI, a government organization; on the other hand, Apple saves data within the device using Face ID and Touch ID, which cannot be authenticated with an external database like the NCPI. That is one of the primary reasons why Apple Pay is not currently accessible in India.
Apple Pay allows you to make a payment without having to touch anything. This eliminates the requirement for a PIN or an OTP. To gain access to the payment, all that is required is a fingerprint authorization. However, in India, the National Payments Corporation of India (NPCI) has made it essential to use a 4- or 6-digit PIN to authorize payments, and no biometric-access payments are now permitted.
Because of this, Apple would be forced to rely heavily on its banking partners, which may not be the best option for them. Another reason why Apple Pay is not currently accessible in India is due to regulatory restrictions.