Apple is reportedly engaged in discussions with banks and regulators in India to introduce its credit card, known as the Apple Card. During his visit to India in April, Apple's CEO, Tim Cook, met with Sashidhar Jagdishan, the CEO and MD of HDFC Bank, according to reliable sources familiar with the matter, as reported by Moneycontrol. This development occurs at a time when mobile phone payments are gaining popularity, with an increasing number of transactions being conducted through mobile devices. Tech giants like Apple, Google, Amazon, and Samsung are actively pursuing opportunities in the payment industry and have ambitious plans in the realm of financial services. These companies have already developed payment applications and are determined to make significant progress in this domain.
Additionally, the report says that Apple engaged in discussions with the Reserve Bank of India (RBI) regarding the specific details of the Apple Card. However, sources reveal that the regulator has requested Apple to adhere to the standard procedure for co-branded credit cards, without providing any special considerations for the company.
As per Moneycontrol, sources indicate that Apple intends to introduce the Apple Card in India as a co-branded credit card in collaboration with HDFC Bank. However, it is important to note that these discussions are still in the early stages, and no final decisions have been made. The precise nature of the discussions and the potential launch date in India remain unknown at this time.
One source reportedly mentioned that Apple was exploring significant deviations from the conventional co-branded credit card model in India. However, it is unclear whether the company is willing to make the necessary compromises to launch the card successfully in the Indian market.
Currently, Apple operates a premium credit card in the United States, which was developed in partnership with Goldman Sachs and Mastercard. This card, constructed from titanium metal, is positioned as a high-end offering.
One of the sources mentioned in the report stated, "Apple works only with the biggest and the best, and hence the discussions with HDFC Bank. While many factors contribute to building partnerships, banks and other brands may be willing to enhance the terms of the deal to secure Apple's collaboration."
The Apple Card seamlessly integrates with Apple Pay, and the cashback rewards are deposited into the user's Apple Wallet, accruing an annual interest rate of 4.15 per cent. Furthermore, the Apple Card does not impose any annual fees. In the United States, Apple allows cardholders to purchase Apple products in interest-free instalments. Additionally, users receive approximately 3-5 per cent cashback when purchasing Apple products and services. There is also the possibility of Apple collaborating with other premium brands to offer 2-3 per cent cashback or reward points for purchases made with these partners.
In the US, Apple provides a daily 2 per cent cashback for transactions conducted through Apple Watch or iPhone by adding a credit card to Apple Pay and using tap-and-pay functionality at NFC-enabled payment terminals. The company also offers 3 per cent cashback at major merchants.