Explained: Why Apple stopped accepting debit & credit card payments for app store & what can users do

Apple will no longer be accepting credit and debit card payments from its Indian users for app purchases and subscriptions, or any other cloud service or media content. Instead, users will have to rely on other payment options in case they want to use Apple’s services.

Users with an Indian Apple ID will no longer be able to make any payments using their debit cards or credit cards, even if they have had the payment systems saved and synced with their Apple ID. The change in Apple’s policy is the result of a directive that the Reserve Bank of India or the RBI had passed last year, that tweaked how recurring online transactions are supposed to take place

As per the RBI’s new auto-debit rules, online merchants such as Apple, are limited to receiving recurring payments from users using debit and credit cards. Merchants have to set up fresh e-mandates from customers, and even then a customer needs to use two-factor authentication for each recurring transaction. They are also required to give their consent using their CVV numbers and an OTP for any payment over Rs 5,000. All of this is pricing a little too hassling for Apple and its users.

As a result, Apple has decided to switch how it accepts payments for the App Store in India. Earlier last year, Apple introduced UPI transactions and net banking for its customers in India. For the time being, these are the only two payment methods that users have. 

Apple is not the only tech company facing issues with recurring payments. Google and Netflix, have also been impacted by the change in regulations. Google in particular is facing issues with recurring payments for Google PlayStore and YouTube Premium. Netflix too had to face such problems, but they were quick to implement a solution. Last year, Netflix introduced an autopay system that was integrated using UPI. This allowed them to continue with recurring charges and payments without any major disruptions.

It is being reported that Apple is also planning to integrate UPI AutoPay into its Indian App Store and continue to implement auto-debit recurring payments. However, there are some regulatory obstacles that they need to clear first.

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