Apple has begun restoring card payments for Apple Account purchases in India after a hiatus of more than four years. The move is the latest sign of how the US tech giant is adapting its services to regulatory changes reshaping the digital payments landscape of the South Asian nation.
Detailed Developments
The change is rolling out in phases, allowing users in India to add eligible Visa and Mastercard credit and debit cards to their Apple Account. Users can use these cards to pay for recurring subscriptions like iCloud+ and Apple Music, as well as purchases on the App Store. Previously, in May 2022, Apple suspended card payments in the country following tightening regulations by India's central bank. For over four years, users in this market had to rely entirely on India's real-time payment network UPI, net banking, or Apple Account balances to maintain their subscriptions.
Background & Causes
The cause of this prolonged disruption stems from the recurring payments framework introduced by the Reserve Bank of India (RBI) in 2021. The new regulation required merchants and payment providers to implement stronger customer authentication for recurring card payments. At the same time, it mandated the adoption of tokenized card credentials and strictly prohibited merchants from storing customers' detailed card information. This sudden transition disrupted subscription billing for many domestic and international businesses before they could upgrade their payment systems.
Technical & Technology Analysis
According to a source familiar with the matter, Apple has completed the technical backend changes to fully support the strict requirements of India's regulatory framework. The new system integrates automatic card tokenization, securing users' card information without storing it directly on Apple's servers. This technical rollout is being executed in phases to ensure system stability and avoid technical glitches, and Apple's official support documentation in India has been updated accordingly.
Expert Opinions & Insights
Tarun Pathak, research director at Counterpoint Research, noted: "It’s long overdue but happening finally. This solves one of the friction points for subscription renewals." The analyst further explained that Apple's services business in India has continued to grow at a double-digit pace despite the lack of direct card payments, but restoring the option is highly critical as Apple's installed base expands and users demand more diverse payment methods.
Impact & Future
Apple's concession to modify its payment system in India reflects a broader global challenge. Governments are increasingly tightening regulations, forcing major tech platforms like Apple to customize products and payment methods for individual countries rather than offering a uniform global experience. This shift also rekindles speculation about the potential launch of Apple Pay in the Indian market, although the company has not made any official announcements regarding such plans.