Taking on its rivals in payment space in the country, Amazon has infused Rs 260 crore into its the digital wallet service Amazon Pay, reports The Economic Times. The fresh investment is done through Singapore-based Amazon Corporate Holdings Pvt. Ltd US-based parent Amazon, according to Registrar of Companies (RoC) filings.
According to ET report, the e-tailer said that the latest investment in its payment arm is “in need of funds for expansion of business operations.“ It makes sense as Amazon Pay is looking to increase the number of services it will offer. It recently announced its partnership with BookMyShow which will allow users to use their Amazon Pay balance account for booking tickets via BookMyShow. This partnership is in addition to its existing range of merchants across verticals like Redbus (bus booking), Abhibus (bus booking), Faasos (food ordering), Box 8 (food ordering), Haptik (chatbot platform), Komparify (phone recharge and comparison platform) amongst others. Amazon had said in a statement at the time of announcement that these partnerships will drive Amazon’s customers to utilize their Amazon Pay balance beyond the marketplace, to merchants in categories like food ordering, travel, bill payments etc.
Untill now, Amazon invested an Rs 130 crore ($20.17 million) into Amazon Pay in July this year, and before that it had infused Rs 67 crore ($10.46 million) in May this year. Besides, this month only, Amazon Pay increased its share capital by five times to Rs 2000 crore. Earlier the wallet company had an authorized share capital of Rs 400 crore, Registrar of Companies data showed. (The authorized share capital is the number of stock units that a company can issue and is often not fully used by in order to leave room for future issuance of additional stock in case the company needs to raise capital quickly.)
Amazon Pay was launched in December last year as a rebranded version of its Gift Card balance feature which allowed users to top up and generate an online gift voucher. In April this year, Amazon India received a wallet license from the Reserve Bank of India (RBI), which enabled it to do away with the two-factor authentication system for Amazon Pay.
While Paytm has dominance in payment space in India. Amazon’s immediate rival Flipkart too is betting big on payments space, along with Amazon itself. Only a week ago, Flipkart committed $500 million for its payments arm PhonePe. The company added that this was an addition to $75 million funds infusion Flipkart had made in PhonePe since acquiring it in 2015. Also, the Indian e-tailer is reportedly also looking at adding various services like cab booking, food ordering, vacation etc on its app by end of this year.