Amazon Invests $41 Million in Amazon Pay India
Amazon invested Rs 350 crore (about $41 million) into Amazon Pay India, the Economic Times reported Friday (April 25), citing regulatory filing with the Registrar of Companies.
Amazon Pay was the eighth-largest Unified Payments Interface (UPI) player by transaction volume in March, and it’s looking to gain share from competitors like PhonePe and Google Pay, who have a combined market share of about 85%, according to the report.
The company received a payment aggregator license from the Reserve Bank of India in February, giving a boost to its merchant payments business, and has also been approved for a prepaid payments instrument or wallet license, the report said.
Amazon competes with other platforms in a variety of services, including bill payments, UPI transactions and insurance premium payments, per the report.
It was reported in August that Amazon Pay was one of five payment firms that applied to join the Indian central bank’s digital currency pilot in order to enable eRupee transactions via their platforms.
When the Reserve Bank of India launched the eRupee pilot program in December 2022, it permitted only banks to offer the digital currency through their mobile applications. But it expanded the program in April 2024 to include payment firms, once they are approved by the RBI.
It was reported in June 2023 that Amazon planned to invest $26 billion in India by 2030.
That report followed earlier announcements that Amazon Web Services was investing $12.9 billion in the country, and a $6.5 billion investment to boost its Indian eCommerce business.
Digital wallets are the preferred payment method for 55% of retail purchases in India, according to the PYMNTS Intelligence and Cybersource collaboration, “2023 Global Digital Shopping Index: India Edition.”
The report found that digital wallets were not only gaining traction in online retail purchases but also in brick-and-mortar stores.
Indian merchants have recognized shoppers’ preferences and offer a range of digital shopping and payment features. Local merchants have excelled in providing a smooth digital shopping experience and earned a Global Digital Shopping Index (GDSI) score that is higher than merchants in any other country studied, except the UAE.
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