Apple to Launch Credit Card in India, Expanding Its Financial Services: Report

Tech giant Apple is reportedly preparing to introduce its own credit card in India, as part of its ongoing focus on the country’s market. Apple CEO Tim Cook recently met with the CEO of HDFC Bank during his visit to India in April, indicating the company’s intent to expand its financial services offerings. According to reports, Apple is in talks with the National Payments Corporation of India (NPCI) to bring Apple Pay to the country. Discussions are underway regarding whether the credit card will be powered by the Rupay platform or the unified payments interface (UPI), with the possibility of linking the Rupay credit card to UPI.

In India, the issuance of credit cards is limited to banks, while UPI is used by customers for seamless and fast payments through QR code scanning on mobile devices. Apple has reportedly engaged in discussions with the Reserve Bank of India (RBI) regarding the card’s details and compliance with regulations. The RBI has requested that the company follow the regular procedure for co-branded credit cards.

It is expected that Apple will launch its co-branded credit card in partnership with HDFC Bank, although discussions are still in the early stages. Currently, Apple operates a premium credit card in the United States, made of titanium and launched in collaboration with Mastercard and Goldman Sachs. The move to enter the Indian credit card market reflects Apple’s commitment to expanding its presence in the country.

Apple’s sales in India have been steadily growing, reaching approximately ₹50,000 crore in the financial year 2022-23. The company has also been investing in the Indian market by opening exclusive stores in Mumbai and Delhi, and shifting a significant portion of iPhone production to India. Despite the regulatory limitations on branding, Apple aims to leverage its strong brand recognition and customer base in India.

The Apple card offers various benefits, including integration with Apple Pay for seamless transactions and the depositing of rewards directly into the Apple wallet. The card does not have any annual fees and in the United States, users can make interest-free installment purchases. Additionally, the card provides cashback rewards ranging from 3-5% on Apple products and services, with the potential for partnerships with other premium brands for additional cashback or reward points.

As Apple expands its financial services portfolio in India, it seeks to capitalize on the country’s growing market and strengthen its position as a leading technology and lifestyle brand. The launch of its credit card will provide Indian consumers with new options for payments and rewards, further deepening Apple’s engagement with its user base.

Sources By Agencies