Apple plans to launch credit card in India, explores partnership with HDFC Bank: Report
New Delhi, June 23: Apple, the technology giant, is reportedly preparing to launch its own credit card in India. During his recent trip to India in April, Apple CEO Tim Cook met with HDFC Bank CEO Sashidhar Jagdishan, indicating the company's interest in entering the Indian credit card market, according to Moneycontrol.
Apple is said to be in talks with the National Payments Corporation of India (NPCI) regarding the launch of "Apple Pay" in the country. It remains uncertain whether the discussions revolve around the credit card being powered by the Rupay platform or the unified payments interface (UPI), as Rupay credit cards can be linked to UPI.
In India, only banks are authorized to launch credit cards, while UPI enables customers to make seamless and quick payments by scanning QR codes with their mobile phones. The Moneycontrol report suggests that Apple has also engaged in discussions with the Reserve Bank of India (RBI) to iron out the details of the card launch. The RBI has reportedly requested the company to follow the regular procedures for co-branded credit cards.
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Reports indicate that Apple is preparing to launch its co-branded credit card in partnership with HDFC Bank in India, although discussions are still in the early stages. Currently, Apple operates a premium credit card in the United States made of titanium, launched in collaboration with Mastercard and Goldman Sachs.
Apple's interest in India stems from its focus on the country over the past few years. According to reports, Apple's sales in India reached approximately Rs 50,000 crore in the financial year 2022-23. Tim Cook recently inaugurated two exclusive stores in Mumbai and Delhi during his visit, and the company has been shifting a significant portion of iPhone production to India.
Apple currently holds a four percent share of the overall smartphone market in India, which translates to around two crore users.
However, Apple faces certain limitations in the Indian credit card market. In India, only banks are authorised to issue credit cards, meaning Apple cannot introduce a card with its logo and the customer's name on the front, as it does in the United States. The RBI has also stated that the bank's partner, in this case, Apple, cannot store customer or transaction data, preventing Apple platforms from storing card details.
The Apple Card, known for its integration with Apple Pay, offers various benefits. Rewards earned through the card are deposited into the Apple wallet. The card does not charge any annual fees, and in the United States, users can make interest-free installment purchases of Apple products. Additionally, aside from receiving 3-5 per cent cashback on Apple products and services, Apple may partner with other premium brands to offer 2-3 per cent cashback or reward points to cardholders.
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- With inputs from agencies
