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In a recent report by local finance website Moneycontrol, it has been revealed that Apple is engaged in discussions with banks to bring its popular Apple Card to India. The report suggests that Apple CEO Tim Cook met with the CEO and MD of HDFC Bank, Sashidhar Jagdishan, during his trip to India in April to explore the possibility of launching the credit card in the country alongside Apple Pay.
The Indian market presents a unique challenge for Apple as only banks are permitted to launch credit cards. As a result, Apple is reportedly considering launching the Apple Card in India as a co-branded credit card in partnership with HDFC Bank, according to sources cited by Moneycontrol.
To navigate the complex regulatory landscape in India, Apple has also initiated discussions with the country’s central bank and regulatory body, the Reserve Bank of India (RBI), regarding the necessary protocols for launching the card. The RBI has allegedly requested that Apple follow the standard procedure for co-branded credit cards, without offering any special considerations for the tech giant.
The Apple Card, initially released exclusively in the United States in August 2019, has yet to expand to other countries. Moneycontrol speculates that the reason behind Apple’s interest in launching the card in India before countries like Japan or Europe is the fact that Apple currently does not accept card payments in India. Instead, most App Store purchases in the country are facilitated through the national Unified Payments Interface (UPI), as regulations prohibit third-party websites from storing credit card information on their platforms.
In the United States, Apple partnered with Goldman Sachs for the Apple Card. The physical card itself is a sleek titanium design with the customer’s name etched on the front and Mastercard and Goldman Sachs logos on the reverse. However, these unique design elements may not be feasible under India’s current co-branded credit card regulations.
While the discussions are still in their early stages, no final decision has been reached, according to sources cited by Moneycontrol.
Tim Cook’s visit to India was not solely focused on credit card negotiations. During his trip, Cook also attended the opening of Apple’s first retail stores in the country. Previously, Apple products were only available through the company’s regional website and authorized resellers. However, Apple’s sales in India reached a new high, surpassing $6 billion in the fiscal year ending in March. This marks a growth of nearly 50% compared to the previous year’s revenue of $4.1 billion, as reported by industry sources.
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Recognizing India’s significance as the world’s second-largest smartphone market, Apple has been actively building its manufacturing supply chain within the country. In a move that highlights India’s perceived importance as a production hub, Apple shifted the assembly of the iPhone 14 from China to India shortly after its release.
As Apple continues to explore opportunities in the Indian market, including the potential launch of the Apple Card, it remains to be seen how the company will navigate the regulatory challenges and establish a stronger presence in this burgeoning market.