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Apple Restores Card Payments in India After Four-Year Hiatus

Created at 6 Jul · 4:30 PM1 source↑ Market-relevant
IN SHORT

Apple has reinstated card payments for Apple Account purchases in India, over four years after suspending the option. This move adapts to India's evolving digital payments regulations, allowing users to use Visa and Mastercard for subscriptions and App Store purchases.

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Key Numbers

fouryears since card payments were withdrawn

Who's Involved

Apple
Restoring card payments for Apple Account purchases in India
Visa
Eligible credit and debit cards can be added to Apple Account
Mastercard
Eligible credit and debit cards can be added to Apple Account
Reserve Bank of India
Introduced the recurring payments framework in 2021
Tarun Pathak
Research director at Counterpoint Research

↳ Why This Matters

The restoration of card payments in India addresses a significant friction point for users and is crucial for Apple's expanding services business in the country, potentially paving the way for future services like Apple Pay.

Key facts

  • Apple has restored card payment options for Apple Account purchases in India.
  • The feature was previously suspended in May 2022 due to changes in India's recurring payments framework.
  • Users can now add eligible Visa and Mastercard credit and debit cards to their Apple Account.
  • This allows payment for subscriptions and App Store purchases.
  • The change is being rolled out in phases.

Apple has begun restoring card payments for Apple Account purchases in India, more than four years after withdrawing the option. This move signifies the company's adaptation to regulatory changes that have reshaped India's digital payments landscape.

The phased rollout allows users to add eligible Visa and Mastercard credit and debit cards to their Apple Account for subscriptions like iCloud+ and Apple Music, as well as App Store purchases. Previously, users relied on UPI, net banking, and Apple Account balance since card payments were suspended in May 2022 following updates to the country’s recurring payments framework.

This change highlights the broader challenge Apple faces globally, needing to tailor services to country-specific rules rather than offering a uniform experience. Similar adjustments have been made in Europe, Japan, and South Korea due to regulatory pressures.

Apple has implemented the necessary backend changes to support card payments under India’s regulatory framework, which mandates stronger customer authentication and tokenized card credentials for recurring payments, while prohibiting merchants from storing card details. Tarun Pathak, research director at Counterpoint Research, noted that this is a long-overdue solution for subscription renewals, crucial as Apple's services business in India continues to grow.

Frequently asked questions

Apple suspended card payments in May 2022 due to changes in India's recurring payments framework, which required stronger customer authentication and tokenization.

Users can now use eligible Visa and Mastercard credit and debit cards, in addition to UPI, net banking, and Apple Account balance.

Introduced by the Reserve Bank of India in 2021, it requires stronger customer authentication, tokenized card credentials, and prevents merchants from storing card details.

What Happens Next

01The phased rollout is expected to expand to all eligible users over time.

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Cadence

How It Developed

Apple has reinstated card payments for Apple Account purchases in India.
The option was withdrawn over four years ago due to changes in India's recurring payments framework.
Users can now add eligible Visa and Mastercard credit and debit cards to their Apple Account.
This enables payments for subscriptions like iCloud+ and Apple Music, as well as App Store purchases.
The change is rolling out in phases and reflects Apple's adaptation to country-specific regulatory requirements.

Sources

T1
Apple brings back card payments for Apple Account purchases in India after a four-year hiatusTechCrunch

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