Apple Pay now in India: How will it work, will MDR charges apply?

Apple Pay has finally entered the Indian market, giving iPhone, iPad and Apple Watch users another way to make card payments at stores, on apps and on websites.

With Apple Pay now available in India, users may want to know which cards are supported, where they can use the service, how payments work and whether any additional charges will apply.

Here are the key things to know about Apple Pay in India.advertisement❮❯ Read Full StoryWHAT IS APPLE PAY AND HOW DOES IT WORK IN INDIA?Apple Pay is Apple's digital payment service that lets users add an eligible credit card to Apple Wallet and use it for payments in stores, apps and on websites.

For in-store payments, users can simply hold their iPhone or Apple Watch near a contactless payment machine after authenticating the transaction using Face ID, Touch ID or the device passcode.

The service does not require users to open a separate payment app or enter a PIN or OTP at the checkout.WHICH CARDS CAN BE USED WITH APPLE PAY IN INDIA?

At launch, Apple Pay is available with Axis Bank-issued Visa and Mastercard credit cards.

Users with eligible cards can add them to Apple Wallet and continue to receive the rewards and other benefits attached to their cards.

Apple has also said that more merchants and apps will support Apple Pay over time, while support for more cards and payment networks could expand in the future.

Apple Pay transactions are card transactions, so the standard merchant discount rate (MDR) applicable to credit card payments would apply.

The MDR is generally a fee charged to merchants for accepting card payments and is separate from the MDR framework being introduced for certain high-value UPI transactions.

The exact MDR can vary depending on the card network, merchant, payment provider and other arrangements involved in the transaction.WHICH APPLE DEVICES SUPPORT APPLE PAY?

Apple Pay is currently available on iPhone, iPad and Apple Watch in India. Support for Mac is coming soon, according to Apple.

Once an eligible card is added to an Apple device, users can start making payments using Apple Pay.HOW CAN YOU SET UP APPLE PAY?

There are two ways to add an eligible Axis Bank card.

Users can add the card through the latest version of the Axis Bank app and add it to Apple Wallet. Alternatively, they can open the Wallet app on their iPhone, tap the 'plus' sign and follow the instructions to add the card.

Once the card is added and verified, it can be used for Apple Pay transactions.HOW DO YOU PAY USING APPLE PAY AT A STORE?

Using Apple Pay at a contactless payment terminal is fairly straightforward.

On an iPhone, users need to double-click the side button or Home button and authenticate the payment using Face ID, Touch ID or the device passcode, if required.

They then need to hold the top of the iPhone near the contactless reader. Apple Watch users can hold the display of the watch near the reader to complete the payment.IS APPLE PAY SAFE TO USE?

Apple says security and privacy are central to Apple Pay.

The actual card number is not stored on the device or Apple's servers, and it is not shared with the merchant. Instead, Apple uses a unique Device Account Number, which is encrypted and stored securely in the device's Secure Element.

Visa and Mastercard also use tokenisation technology to protect card details during Apple Pay transactions.

"With Mastercard’s tokenisation technology, every Apple Pay transaction is protected by a unique, cryptographically secured token, ensuring card details are never shared with merchants, safeguarding consumers against fraud," said Gautam Aggarwal, Mastercard’s president of India and South Asia.WHERE CAN YOU USE APPLE PAY IN INDIA?

Apple Pay can be used at contactless payment terminals and participating online and in-app merchants.

At launch, Apple said millions of merchants across India will accept Apple Pay. These include Apple Store, Blinkit, Chaayos, Croma, Interflora, Ixigo, Le15 Patisserie, Reliance brands, Tata 1mg and Zomato, among others.

Apple has also worked with payment service providers including Cashfree, JusPay, Mswipe, Paytm, PayU, Pine Labs, Razorpay and Worldline to bring the service to merchant networks.WHAT HAPPENS IF YOUR IPHONE IS LOST OR STOLEN?

Apple says users can use the Find My app to locate their device and lock or suspend payments from it if their iPhone is lost or stolen.

The use of a Device Account Number instead of the actual card number also means the card details are not simply stored on the device in their original form.CAN YOU STILL EARN CREDIT CARD REWARDS WITH APPLE PAY?

Yes. Apple says users will continue to receive the rewards and benefits offered by their cards when they make payments using Apple Pay.

This means adding an eligible Axis Bank credit card to Apple Wallet does not remove the existing rewards associated with that card.- Ends

Jasmine Anand is a Senior Reporter (Emerging Tech) at India Today. With over 15 years of experience, she has earlier worked as a Financial Journalist in a multinational equity research firm, tracking equities, stock market, economy, IPOs and market-moving stories. Jasmine's forte is to scribe meticulously complex facts and figures into lucid and interesting reads. In her leisure time, she loves binging on movies and is passionate about painting, calligraphy, arts and crafts.