Amazon recently announced an injection of 10 billion rupees into Amazon Pay, its Indian payment arm, to compete with other payment giants and accelerate expansion in India during the upcoming Festival of Lights, according to media reports.
Amazon Pay is reportedly funded by Amazon Corporate Holdings Private Limited in Singapore and Amazon.com Inc Limited in Mauritius. In September alone, Amazon Pay secured 4.5 billion rupees.
Led by the growth of mobile payments, digital payments in India will grow fivefold, reaching $1 trillion by 2023, according to a report by financial services firm Credit Suisse, with more than 95% of revenue coming from brick-and-mortar offline stores.
This shows that India’s digital payment market is very broad.
India is entering a cashless society, which is one of the recognized phenomena. According to relevant media reports, the rise of cashless payments in India is very fast.
Amazon has been trying to tap into the market with Amazon Pay after seeing a surge in digital payments in India.
Of the 5m sellers on Amazon Pay in India, 2.5m operate retail and shopping stores and 1.9m are in restaurants, small restaurants, food and beverage stores, salons and medical facilities.
During this year’s month-long Great India Festival, Amazon Pay offered multiple rewards and instant cash back to customers who made big purchases, with Amazon Pay Later registering 3 million times and Amazon issuing about 175,000 new Amazon Pay ICICI cards.
Amazon says one in two customers who use credit cards to make purchases use Amazon Pay ICICI cards.
Amazon Pay Later is a payment service based on BNPL (Buy now, Pay Later). Within a year of its introduction, 10m of transactions were completed. One million Amazon Pay ICICI cards have been issued so far, with two million customers.
It is worth mentioning that In September this year, Amazon announced that the number of Amazon Pay UPI users in India exceeded 50 million. In the past year, more than 75% of the customers using Amazon Pay UPI came from second – and third-tier cities, and its business coverage continues to expand.
Users can pay with UPI within the Amazon app, which supports services such as phone and DTH top-up, sending money to contacts, paying wages, and paying for purchases on Amazon.
Amazon Pay aims to improve the payment platform and user experience by simplifying the user authentication process and making it easier to operate, in order to accelerate the adoption of digital payment methods on a large scale in India and achieve a cashless society.
Amazon Pay recorded 62.9m of transactions in the year to September, ranking fourth among UPI apps, followed by PhonePe with 1,653.19m of transactions and Google Pay with 1,294.56m, according to data published by NATIONAL Payments.
Notably, Amazon Pay recently entered into a long-term strategic partnership with MakeMyTrip, an Indian online travel company that will offer travel services through the retail giant’s Website and App in India. The partnership is also part of Amazon Pay’s value creation by offering more services to Indian consumers.