Apple plans credit card launch in India, partners with HDFC Bank

Apple is reportedly in discussions with banks and regulators to introduce its credit card, called "Apple Card," in India. During his visit to India in April, Apple's CEO Tim Cook met with HDFC Bank's CEO and MD, Sashidhar Jagdishan, according to insider sources. This move comes as mobile phone payments are increasingly popular in India, with technology giants like Apple, Google, Amazon, and Samsung actively pursuing opportunities in the financial services sector. Apple has engaged in talks with the Reserve Bank of India (RBI) to discuss the card's details. However, the RBI has requested Apple to follow standard procedures for co-branded credit cards without any special considerations.

Both Apple and HDFC Bank have declined to comment on the matter. The discussions regarding the launch of the Apple Card in India are still in the early stages, and specific details and a launch timeline have not been determined. It remains uncertain if Apple is willing to make the necessary compromises to adhere to Indian regulations. In the US, Apple's premium credit card, created in partnership with Goldman Sachs and Mastercard, offers unique features such as a titanium design and high-end positioning.

India has become a key focus for Apple, with growing iPhone sales and increasing revenue. Launching the Apple Card in India could have a significant impact on the company's revenue, given the large number of transactions conducted in the country. Additionally, the expansion of Apple's retail presence and the shifting of iPhone production to India further demonstrate the company's commitment to the Indian market.

One possible reason for considering India as a launch market is that Apple does not currently accept card payments in the country, relying instead on the Unified Payments Interface (UPI) for most App Store purchases. Launching its own credit card in India would allow Apple to overcome this limitation and provide an alternative payment method to Indian customers.

However, Apple would need to navigate strict co-branded credit card regulations in India, which require prominent bank involvement and prohibit certain liberties taken in other countries. While the launch of the Apple Card in India presents a promising opportunity for banks to attract premium Apple customers, significant privileges may be challenging to offer due to regulatory restrictions. The Apple Card offers integration with Apple Pay, cashback rewards, and a competitive interest rate. In the US, Apple provides additional benefits such as interest-free installment options for purchasing Apple products and cashback on purchases from partner brands.