Apple Pay Skips UPI? Your Cashback Is at Risk

Apple Pay may launch in India using Visa and Mastercard cards instead of UPI. That means higher transaction costs, no UPI cashback, and a payments experience very different from what Indian users enjoy today.

Here's what happened: Apple is reportedly in advanced talks with HDFC Bank, ICICI Bank, and axis-bank" class="text-primary font-semibold hover:underline">Axis Bank to launch Apple Pay in India as early as October 2025, using tokenised Visa and Mastercard cards in the first phase.. UPI integration is not confirmed for the initial launch — Apple and NPCI are still negotiating over authentication standards and how revenue would be shared on India's near-zero-cost payment rails.. A card-first Apple Pay launch would mean Indian users tap their iPhone or Apple Watch to pay using existing credit or debit cards, not their linked bank account via UPI..

What you should do: Check whether your primary bank (HDFC, ICICI, or Axis) issues a Visa or Mastercard — if yes, you may be among the first eligible for Apple Pay when it launches.. Compare the reward rates on your existing Visa/Mastercard credit card against your current UPI cashback apps before switching your default payment method to Apple Pay.. Keep your UPI apps active regardless of Apple Pay — until UPI integration is confirmed, do not abandon PhonePe, GPay, or Paytm for everyday low-value payments where UPI rewards are highest..

Tokenised card payments through Apple Pay are actually more secure than swiping your physical card — your real card number is never shared with the merchant, reducing fraud risk significantly.