IndiaCatalog.com
India News
Search Web Directory
News Home
Amazon to continue investing heavily in payments business
Posted on 27th March 2018
Bengaluru/New Delhi: Amazon India, which has doubled down on building out its digital payments business in the country, plans to continue investing heavily in the business and introducing more local innovations for Indian customers over the coming quarters, even as it grapples with new know-your-customer (KYC) regulations from the Reserve Bank of India (RBI), which have slowed down growth of new users.

In an interview, Amazon Pay’s new India head, Mahendra Nerurkar, conceded that the RBI regulations around mandatory KYC processes have resulted in a slowdown of new digital payments customers.

“We take customer trust very seriously and also take regulatory compliance very seriously. So, there’s no cutting corners around that. We are asking customers for their officially valid documents, so that they can keep loading balances and using it. What we are seeing is that the adoption from new customers is being affected because of this. One of their primary reasons for using stored-value instruments was that it was friction-free and easy to use. And a certain amount of friction has been introduced as a result of these regulations,” Nerurkar said.

“I think we’ll need to be patient in terms of figuring out what the best regulations are...I don’t think we’ve found the right solution yet as an industry and we’re working very closely with the regulators to find that solution,” he added.

As per RBI’s latest guidelines, digital wallet players can issue two types of accounts. The first has a transaction limit of Rs10,000 per month, which can be opened with a one-time-password verification of a mobile number, combined with a valid identity document like a PAN card or a driving licence. The second type of e-wallet account has a transaction limit of Rs1 lakh per month—these accounts require a complete KYC, which means validating identity as well as address.

Nerurkar, however, said that despite the new regulations, the volume of Amazon India’s cash transactions has gone down significantly, while digital payments have grown since the government’s decision to ban large-denomination notes in November 2016.

“We began last year post demonetization with roughly 40% of our transactions being digital. Now, we are at roughly 60% of our transactions being digital in a year. I think all our initiatives, i.e. improvement in experience, affordability, creating solutions like cash at doorstep, finding new ways of driving digital engagement with customers, are adding to new digital customers. Cash transactions have come down from 60% to 40% in a year,” Nerurkar said.

Mint reported in October that Amazon India is preparing to increase investment in its own payments arm by at least five times. According to filings with the ministry of corporate affairs, Amazon has increased its authorized capital for Amazon Pay India Pvt. Ltd to Rs2,000 crore (roughly $305 million) from Rs400 crore.

Over the past 12 months, Amazon has infused capital into its payments arm a number of times, as it looks to gain a bigger chunk of India’s booming digital payments ecosystem. In May, Amazon pumped in Rs67 crore into the payments arm, while in July, it poured in Rs130 crore into the business.

In December 2016, Amazon launched its Pay Balance service in order to boost cashless transactions. In July last year, Amazon—which had applied for what is called a Prepaid Payment Instrument (PPI) licence—received the licence from the RBI.

Amazon’s payments business has seen significant growth over the past year. The number of digital transactions on Amazon India have doubled, while the share of digital payments for Amazon India grew from 48% to 60% in 2017.

Amazon also has some innovations in India, such as Paylink, which allows online consumers to pay for orders through a payments link. Overall, last year, Amazon Pay grew 126%, while its payments wallet, Amazon Pay Balance, grew by 409% in 2017.

For now, the company is focusing on investments that will lead to more affordable products for customers.

“The big challenge on the affordability part is that we have 20 million credit card customers in the country and that number hasn’t grown rapidly over the past few years,” said Nerurkar.

Amazon’s aggressive moves to gain a slice of the digital payments pie in India comes at a time when investor interest in the sector is at an all-time high. Arch-rival Flipkart is also spending millions of dollars on expanding its own payments business PhonePe.

Related Companies: Amazon India   

Other Latest News
IT raids in Delhi, Jaipur in tax evasion case against Rajasthan group
Posted on 13th July 2020
The Income Tax Department is conducting searches in four cities, including Delhi and Jaipur, in connection with a tax evasion case against a Rajasthan-based jewellery group, officials said on Monday.

They said the raids have been launched early morning in Delhi, Jaipur, Mumbai and Kota.

YES Bank declines for second straight day, slips 17% on heavy volumes
Posted on 13th July 2020
Shares of YES Bank extended their decline itnto second straight day, down 17 per cent to Rs 21.20 in the intra-day trade, on the BSE on Monday on the back of heavy volumes after the bank on Friday fixed floor price for its proposed follow-on public offer (FPO) at Rs 12 per share and a cap of Rs 13 per unit. In the past two trading days, the stock has tanked 20 per cent from a level of Rs 26.65 on the BSE.

Indiscipline will not be tolerated, says Rajasthan Congress chief Avinash Pandey
Posted on 13th July 2020
With the political logjam in Rajasthan continuously intensifying, the ruling Congress in the state has made it clear that it will not tolerate any indiscipline in the party.

The statement comes as the crucial Congress Legislature Party meeting is underway.

Sachin Pilot likely to be sacked from Congress but won't join BJP: Sources
Posted on 13th July 2020
With the political developments in Rajasthan intensifying after Deputy Chief Minister Sachin Pilot revolted against the Ashok Gehlot led government, the Congres party is likely to sack the former as the president of Rajasthan Congress.

Raghuveer Meena likely to be appointed as new Congress state president in place of Sachin Pilot, sources quoted by Zee News claimed.

Coronavirus Outbreak: With 28,701 cases in a day, India's COVID-19 tally tops 8.78 lakh; death toll 23,174
Posted on 13th July 2020
As the coronavirus cases in India continue to spread rapidly, India is now just behind the United States and Brazil in terms of the total confirmed cases as it already overtook Russia to take the third spot in the list of worst-hit nations in the world affected by the coronavirus disease (COVID-19). It is, therefore, also the biggest epicenter of the coronavirus disease pandemic in Asia.

With over 28,800 new cases reported in the last 24 hours, India's COVID-19 count on Monday crossed the 8.78 lakh-mark, while the death toll has crossed the 23,000-mark as well.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Amazon to continue investing heavily in payments business
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for Amazon to continue investing heavily in payments business

Most Read News

China has caused great damage to the US, rest of the world: Trump

US airlines reach deal on govt loans as Covid-19 threatens demand, jobs

Gold price slides Rs 188 to Rs 48,444 per 10 gm, silver is 48,870 per kg

Apollo Tyres decides to reduce capex by Rs 400 crore over coronavirus

GMR completes stake sale in airport biz to Groupe ADP, gets Rs 4,565 cr

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2020 IndiaCatalog.com
    All Rights Reserved
Privacy Statement