Now that mobile payments have become a global trend, this “convenience” is easily “addictive”, and people’s time spent on payments has entered a temporal dimension in seconds.
In April of this year, e-commerce giant Amazon announced that Amazon pay users of India’s Amazonian mobile payment service can transfer money and in-store payments directly through the Unified Payment Interface (UPI). UPI is understood to be one of India’s most popular online trading methods.
It is Amazon’s biggest recent move in digital payments and marks its official entry into the Indian mobile payment market. India has become a battleground for global e-commerce giants as the country’s payments sector heats up.
In addition to facing potential rivals such as WhatsApp, owned by Facebook, and Reliance Jio, the telecoms company owned by Mukesh Ambani, India’s richest man, Amazon Pay is also in a battle for digital payments with Paytm, the Indian mobile payments giant.
It is reported that in the new round of financing, Paytm has received Alibaba (Alibaba) and SoftBank Group (SoftBank), payment tools PhonePe and Google payment service platform Google pay huge investment.
Among the digital markets it focuses on globally, Amazon is the most optimistic about the mobile payment market in India and has invested heavily in the Indian market.
It comes after Amazon invested heavily in India’s e-commerce sector, investing 272.9 billion rupees in Amazon Seller service, its e-business arm.
Amazon pay has attracted 27.71 billion rupees of financing since it was launched in 2016, according to regulatory documents released by Tofler, a business intelligence platform. More than half of them came from the company’s financing in 2018. Last year, Amazon changed its financing strategy in a move to rapidly expand its payment services.
In addition to meeting the needs of Amazon users at all levels in India, the company is also investing heavily in payments and trying to attract customers’ attention through promotions such as cash back.
This is only Amazon’s first step in the Indian market, and its investment and payment network will expand further thereafter.
At present, with the Amazon India station competing with Paytm and Wal-Mart (Walmart) Flipkart, strong payment services will be an important tool for retaining customers and obtaining data on customer consumption patterns. In addition to supporting the payment of utilities, Amazon is also working with leading Indian merchants such as Swiggy, an online food delivery company, BookMyShow, an online ticketing portal, Cleartrip, an online travel website, and Netmeds, an online pharmacy, to expand the market share of Amazon Pay, its mobile payment service.
For Amazon, the more people who use its payment products, the more customer account data is stored in the Amazon ecosystem, and the better for the company.
Meanwhile, some believe Amazon has entered the digital payment sector late. “In the digital payment ecosystem built by India’s unified payment interface, the competition between Google pay and PhonePe two companies is most intense, and now the gap between the two is wide,” says one Amazon executive. Joining the battle will be difficult and faltering. ”
Currently, most payment companies are promoting the unified payment interface platform (UPI) to users. In the meantime, it remains to be seen whether amazon’s investment in digital wallets will pay off.