The e-commerce platform, Amazon India, has invested Rs. 195 crore in its digital payment arm- Amazon Pay India Private Limited. According to the retail giant, digital payment market in India is almost at its peak and Amazon is planning to take its competitors head-on in this department as well.
Other than digital payments, Amazon India has made its mark in the industry as a retail brand. The company has been successfully selling quality products at amazing prices to its customers. Various Amazon offers can be availed almost 24×7 on trending products through the website.
Google’s mobile payment service Tez, Paytm and Flipkart’s payment service PhonePeare some of the leading companies in this sector, with a good hold in the market. As per the Registrar of Companies (RoC) documents, the funding for this investment came from Amazon Corporate Holdings Private Limited, based out of Singapore and Amazon.com Inc, based out of US.
In February 2018, Amazon was granted capital infusion through Rights issue. Under the same, the existing stakeholders of the company were given the right to buy additional shares from the firm directly within a fixed time duration, in proportion to their existing holdings.
As per a report in Credit Suisse, a financial services company, the digital payment platform is expected to rise up to five times in India and will reach a capital of $1 trillion by 2023. The reason for the same is the growth in mobile payments department of the e-commerce platform.
This big step taken by Amazon is an implementation of the commitment, made earlier about the vision of India being less-cash and more digital. The company says that it has been working on ways to improve affordability, reduce customer friction and encourage digital payments, making it as a strong market.
Amazon has brought its own digital payment service which allows members to load cash easily and effortlessly. Customers can add money to their Amazon Pay balance while conveniently sitting at home. There is also a very helpful service provided by Amazon to those who do not have access to net banking or electronic cards.
Whenever a customer receives their order with payment mode- cash on delivery, they can ask the delivery associate to add the remaining change to their Amazon Pay balance. They can also give the extra amount in cash, up to 10,000 to the associate for the same.
Flipkart owns a digital payment startup named PhonePe. The firm claimed that it was going to cross the Total Payment Value annual run rate by Rs. 80,000 crores. This is their prediction for March 2018. The parent company of this firm, Flipkart, had pledged to help PhonePe with $500 million to take over its competitors in the market- Paytm, Google Tez and now Amazon Pay.