Is Apple Pay’s Potential India Entry a Threat to Paytm, Pine Labs, and Other Fintech Giants?

Synopsis: Apple’s reported plans to launch Apple Pay in India by mid-2026 have raised concerns among fintech players like Pine Labs, Paytm, and AvenuesAI. While unlikely to disrupt UPI leaders immediately, Apple Pay could reshape the premium payments segment and strengthen Apple’s ecosystem-driven strategy.

Apple’s rumoured plans to roll out Apple Pay in India by mid-2026 indicate a clear intention to enter one of the world’s most rapidly expanding digital payment markets. With talks already underway with HDFC Bank Ltd, ICICI Bank Ltd, and Axis Bank Ltd, in addition to international networks Visa Inc. and Mastercard Inc., it appears that Apple is preparing for a serious and ecosystem-driven foray, rather than a mere pilot project. 

Notably, Apple Pay is set to support India’s Unified Payments Interface (UPI) alongside card payments, lining up with the most popular payment methods in India’s digital economy.

In terms of competitive dynamics, while Apple Pay will not pose an immediate threat to mass-market leaders, it could significantly change the landscape of the high-end payments value chain. Today, India’s payments landscape is led by PhonePe, Google Pay, and Paytm, all of which are deeply integrated with UPI and do not monetise transactions. 

Apple Pay, on the other hand, usually takes a cut from card transactions and further cements hardware stickiness. Given Apple’s current 10% smartphone market share in India and growing presence, Apple Pay could drive services and device loyalty rather than aiming for mass-market leadership.

Market Reaction: Why Fintech Stocks Fell

The stocks of payments and fintech firms reacted cautiously to the development. Pine Labs was down 4% in afternoon trade, while One MobiKwik Systems Ltd was down 2%. One 97 Communications (Paytm) was down about 3% from its high but partially recovered from its intraday lows. AvenuesAI Ltd (Infibeam Avenues) shares fell almost 3%.

For Pine Labs and AvenuesAI Ltd (BillDesk’s parent entity), the threat of disruption is more about merchant economics than adoption. Pine Labs already has a strong presence in point-of-sale infrastructure and card acceptance services. If Apple further embeds tap-to-pay transactions with Face ID and ensures seamless payment experiences between iPhones and Apple Watches, it may have a gradual impact on high-value merchants in urban areas and upmarket retail chains. 

But since Apple Pay will continue to use existing card networks and UPI infrastructure, it may coexist with, rather than disrupt, merchant acquirers in the short term. For Paytm, the threat is more strategic in nature. While Paytm has a strong play in UPI-driven volume business and financial services cross-selling, the Apple brand’s attractiveness to high-spending users may raise competitive stakes in the high-spending user base. 

Apple Pay’s biometric authentication, facilitated by the RBI’s recent directive to allow fingerprint and facial recognition for digital payments, also seems to align well with the Indian regulatory environment. However, with UPI’s zero MDR model and Apple’s smaller device base compared to Android, it’s difficult to see a displacement impact in the short term.

In the larger picture, Apple’s India strategy is all about expanding its ecosystem. With more than 750 million smartphone users, low mobile data costs, and robust digital infrastructure, India offers a gateway to the expansion of Apple’s services business. The firm is also increasing its manufacturing and retail footprint in the country, viewing payments as an extension of its hardware play. If done correctly, Apple Pay may strengthen its ecosystem instead of directly competing in the highly competitive fintech space in India on price.

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