Apple Restarts Card Payments for Apple Account Purchases in India After Four-Year Hiatus

Apple has begun reincorporating card payments for Apple Account purchases in India after a hiatus of more than four years. This action indicates how the iPhone maker is adjusting its services in response to regulatory changes that have reshaped the nation’s digital payment landscape.

The rollout, which is being executed gradually, allows users in India to link eligible Visa and Mastercard credit and debit cards to their Apple Account for payments on subscriptions such as iCloud+ and Apple Music, as well as purchases from the App Store.

In May 2022, Apple suspended card payments in India due to modifications in the country’s recurring payments regulations. Consequently, users have relied on UPI, India’s real-time payments system, net banking, and their Apple Account balance for subscriptions and other digital transactions with Apple.

This initiative underscores a larger challenge for Apple, as governments around the world enforce specific regulations on digital platforms, increasingly compelling the company to tailor its products, payments, and services to meet local rules instead of providing a uniform global experience. Similar difficulties have led Apple to modify aspects of its App Store operations in Europe, while regulatory changes in Japan and South Korea have also impacted app distribution and payment methods.

Sources close to the situation report that Apple has made necessary backend modifications to support card payments in line with India’s regulatory structure. The phased implementation began recently and is expected to gradually encompass all eligible users. Apple has also updated its support documentation to reflect this change.

The framework introduced by the Reserve Bank of India in 2021, rolled out in phases, required merchants and payment processors to adopt enhanced customer authentication for recurring card payments and utilize tokenized card credentials while restricting them from storing customer card information. This shift disrupted subscription billing for many domestic and international firms until they could upgrade their payment platforms.

“It’s long overdue, but it’s finally happening. This overcomes one of the obstacles for subscription renewals,” commented Tarun Pathak, research director at Counterpoint Research.

Even without direct card payments, Apple’s services segment in India has continued to grow at a double-digit rate, but reestablishing this option is becoming more vital as the company’s user base expands and consumers increasingly expect diverse payment methods, he told TechCrunch.

The restoration of card payments may also revive conversations about Apple Pay in India, as reports suggest that the company is considering the launch of the service in the country. However, Apple has not revealed any intentions to introduce its mobile payment service in India.

Apple did not respond to a request for comment.