Apple Pay in India: HSBC in talks to join as second bank, other lenders explore tie-ups

Apple Pay’s India expansion could be entering its next phase, with more banks considering partnerships with the iPhone maker after its September launch with Axis Bank. HSBC India is reportedly in discussions to join the payment platform by the end of the current financial year, potentially giving its credit card customers another way to make contactless payments using Apple devices.

The development also adds a new dimension to an indication that had emerged from HSBC’s mobile banking app last month, when its App Store listing showed Apple Wallet support. However, HSBC is not the only lender exploring the possibility. Several large Indian banks are also discussing partnerships with Apple, although the commercial terms could determine how quickly the service reaches more customers.

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HSBC could become Apple’s second banking partner in India

According to a report by Business Standard, citing people familiar with the discussions, HSBC India could join Apple Pay by the end of FY27. The bank had 1.02 million credit cards in circulation as of September 2026, according to Reserve Bank of India data.

Last month, HSBC’s App Store listing indicated Apple Wallet support, raising the possibility of another bank joining the platform. However, the listing did not confirm that HSBC cards could already be added to Apple Wallet or establish a launch date. The latest report suggests that discussions over a possible partnership are now underway.

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Other lenders are also considering joining the ecosystem. Kotak Mahindra Bank CEO Ashok Vaswani said during the bank’s second-quarter earnings call that it would eventually join Apple Pay, depending on customer demand. He indicated that the bank could make this happen over the next couple of quarters.

Why are banks still negotiating with Apple?

The commercial arrangement remains an important consideration. Banks are assessing Apple’s share of the interchange income they earn from card transactions. According to the report, Apple charges around 15 basis points per credit card transaction in most global markets, although the rate varies.

Interchange is the fee paid by a merchant’s bank to the card-issuing bank for processing a transaction. Apple’s share comes out of this income rather than being an additional charge directly imposed on customers.

Apple Pay allows you to add eligible cards to Apple Wallet and make contactless payments by tapping compatible devices at supported payment terminals. The service operates in more than 90 markets and has partnerships with over 11,000 banks and network partners worldwide.