Apple Brings Back Card Payments in India: What It Means for iPhone Users and the Future of Apple Pay
Apple is going to make a very significant change in the lives of its customers in India, as they are planning to reinstate support for credit and debit card transactions within the App Store and iCloud. After the introduction of card tokenisation rules by the Reserve Bank of India (RBI), the feature had been withdrawn in 2021, leaving Apple with no choice but to stick to UPI, net banking, and Apple ID balance payments. However, after being compliant with the safety rules set by RBI, the company has started testing the new payment method using a few chosen customers. Although there hasn’t been any announcement from Apple regarding its launch across the country, the new feature represents a massive shift in the payment options of millions of Indian customers. Here is everything you need to know about the latest changes made by Apple.
Credit & Debit Cards Accepted by Apple In India
It looks like Apple will be adding support for making credit and debit card payments among its Indian customers. The move is part of restoring an offering that has been missing from the service offering for the past five years. As per news sources, the tech giant has begun the testing process of making the payment method available for a limited number of its users first and then to all its users. It will enable Apple customers to purchase applications in the App Store, iCloud storage plans, Apple Music subscription, Apple TV+, and other Apple services using the credit or debit cards of theirs. It is quite evident that the transaction process will become easier and convenient for people who love to use the traditional method of payment rather than UPI/net banking for making online payments. Apple will probably give users the ability to add cards to the account through the Payment & Shipping settings of iPhones and iPads. Though the company has not announced any official dates yet, there is every chance that it will roll out the feature sooner.
Why Did Apple Discontinue Card Payments? – Changes That Have Taken Place
The American tech giant discontinued the use of credit and debit cards in India after RBI rolled out its card tokenization rules. With the new regulation, the intention was to increase payment security through the removal of merchant access to any customer data. In effect, the tokenized form of customers’ card details would be kept at authorized card network companies only to ensure payment safety and prevent data theft and fraud. As the company was yet to align its payment system to meet the regulatory needs of RBI, it suspended card payments and encouraged users to pay through alternative means such as UPI, net banking, or preloaded Apple ID accounts. As per recent reports, the company has upgraded its payment system to become compliant with the tokenization requirements by RBI. Consequently, Apple has managed to resume card payments via their digital platforms.
Implications of the Changes for Indian Apple Users
The reinstatement of card payments is likely to increase the convenience and usability of Apple’s ecosystem for Indian customers. As soon as the functionality goes live, users will not have to depend only on UPI, net banking, or preloaded balance of their Apple IDs to make purchases in the App Store, Games Center, iTunes, or other sections. Instead, they will be able to pay for all the products through their chosen credit or debit card, thus making payments much easier for themselves and less time-consuming. This will prove particularly useful for those who subscribe to various applications regularly and have their card connected to their subscription. The process of adding a payment card is supposed to be very easy since it involves only going to the Payment & Shipping section of the Settings app. Even though the feature has been implemented by now and is currently being tested, it should become accessible to everyone shortly.
Introduction of Apple Pay in India: The Beginning?
The return of card payments from Apple has brought to life new conversations regarding the imminent introduction of Apple Pay in India. Apparently, the tech giant has been cooperating with banks and major card companies in order to comply with payment regulations required by the Reserve Bank of India, which would eventually allow for the introduction of its digital wallet solution. Even though Apple Pay is currently functioning in various parts of the world, its introduction into the Indian market has been postponed because of the strict requirements related to tokenisation of payment cards and localisation of the corresponding data. However, surprisingly enough, there have been no reports about Apple’s plan to establish a data centre in India. The tech giant intends to adhere to the requirements put forward by RBI and avoid keeping tokenised data locally on their own servers. Even though the exact date of the launch of Apple Pay has yet to be revealed, the resumption of card payments can be seen as the key milestone.
Conclusion
The recent move by Apple to revive its credit and debit card payment option in India is a major step towards enhancing the user experience of its customers. With the company following the tokenization guidelines laid down by the RBI, it will become easier for users to make digital transactions without compromising on the security aspects. Even though the service is currently being tested, the company hopes that its implementation will make life easier for customers using the App Store, iCloud, and other Apple products. Most importantly, this may pave the way for the launch of Apple Pay in India.
