Apple resumes card payments in India after 4-year hiatus

Apple has finally brought back card payment options for Apple Account purchases in India after a long four-year absence. This phased restoration follows changes made by the company to its payment system to meet India’s strict auto-debit rules and data localization requirements. This shift represents a significant move in how Apple conducts transactions in one of its quickest growing markets.

Indian users are now seeing the return of card payments on the App Store, Apple Music, iCloud, and other Apple services as part of a gradual rollout across the country. The absence of card payments over the last four years was not due to technical issues but rather a regulatory disagreement. In 2022, India’s Reserve Bank implemented stricter auto-debit regulations, mandating additional authentication for recurring transactions over 5,000 rupees (approximately $60). Instead of implementing a temporary solution, Apple chose to remove card support completely, leading users to find other payment methods.

The company had to rebuild its payment system for India to comply with the new regulations. The updated system now works through compliant payment gateways that follow the Reserve Bank’s e-mandate framework, adding an extra layer of authentication that was not present in Apple’s previous setup.

While Indian users adjusted to workarounds like UPI and net banking during the card payment hiatus, the challenges remained. These alternatives made tasks like gifting apps, managing family sharing, and topping up Apple Account balances more complex and time-consuming for users.

Apple’s timing for reintroducing card payments isn’t coincidental. The company views India as a crucial market, with iPhone sales growing by 39% year-over-year in 2025. By opening flagship stores, manufacturing local iPhone models, and reducing barriers to ecosystem adoption, Apple is making a concerted effort to strengthen its presence in India.

The reintroduction of card payments is essential for Apple as it drives services revenue. When users can easily subscribe to Apple Music, iCloud, Apple TV+, and make App Store purchases with saved cards, engagement rates tend to rise. By giving users multiple payment options, including UPI and card payments, Apple is providing flexibility while keeping an eye on the economic benefits.

Overall, the return of card payments in India reflects Apple’s strategic move to enhance services revenue in a market that is expected to have 200 million iPhone users by 2028. The phased rollout allows Apple to fine-tune its new payment system and adjust as needed, ensuring a smooth transition for users. The impact of this change on services revenue growth in India will be revealed in Apple’s upcoming financial disclosures specifically focused on the region.