Apple has lately been looking to expand its banking services to other countries those in the U.S.A in addition to the U.K. The Cupertino-based firm is looking forward to the introduction of its Apple Card in India through a partnership together with HDFC Bank.
According to MoneyControl which is an Indian publication in India, Apple Chief Executive Tim Cook met with HDFC Bank CEO and MD Sashidhar Jagdishan when he visited India in April to celebrate the opening of Apple’s first store in India.
Is Apple Pay coming to India?
The publication says that Apple is currently engaged in discussions about talks National Payments Corporation of India (NPCI) to launch Apple Pay in India. It’s not yet clear whether Apple is in talks with NPCI to launch Apple Card through the NPCi’s Rupay platform or linking Apple Pay to the Unified Payment Interface (UPI) which is an Indian-made system for seamless money transfers through QR codes.
If Apple introduces a credit card based on Rupay Apple Card within India it will be connected to UPI and cardholders can conduct purchases straight from the card, as only Rupay cards are connected to UPI at present.
Only banks can issue credit cards in India. Thus, Apple will have to cooperate with a bank. If the report of MoneyControl is believed to be true, Apple has chosen HDFC Bank for this.
In the U.S., Apple partnered with Goldman Sachs and Mastercard for the launch of an Apple Card. Customers can avail of attractive deals like 3% cash back for purchases at Apple Stores and selected merchants, and interest-free monthly installments for purchases of an Apple item using an Apple Card.
As per MoneyControl, Apple is also working in talks with the Reserve Bank of India for discussions on the specifics of the cards. According to a source, the authorities of the government have requested Apple to adhere to the standard process where businesses partner with banks to provide co-branded cards for customers. RBI is not in a position to provide any specific service to Apple according to MoneyControl.
The talks between Apple and the regulatory authorities of India are at the beginning stages and there is no confirmation at the moment when Apple will introduce Apple Card and Apple Pay to India currently.
“Apple does business only with the biggest and most efficient companies, hence the talks regarding HDFC Bank. Although a lot of effort is involved in forming partnerships, banks and other companies are willing to modify the terms of a deal to get Apple to join,” said one of the sources.
What is the reason Apple chooses India instead of Europe?
India is the current largest area of focus for Apple due to the rising smartphone demand and the desire of consumers to purchase premium phones. At present, Apple holds a 4 percent market share of India. Indian smartphone market. With the rise that is UPI, Apple is lacking in the financial markets in India.
According to a reliable report, “Apple is cagey about some of these guidelines. Therefore, the company has decided to stop payment transactions for cards in India for a time. It’s logical it is logical for the business to think about the possibility of creating their own credit card prior to when it resumes payments to cards in India and thus preventing other credit cards accepted through that platform”.
