Update: An Amazon India spokesperson told MediaNama that “Amazon Pay has seen its new customer adoption rate decline by 30% due to the requirement of officially valid document mandated by the new regulations. Cash loads at doorstep which enable cash customers to participate in digital payments has taken a hit of 80%.”
The spokesperson further added that mandating “customers to submit an officially valid document to be permitted to make such transactions (wallet transactions of comparatively low value) adds friction and will send the customer back to cash as seen by the significant adoption decline in the last week. Requiring that such customers should do a KYC within 12 months regardless of their level of usage will further result in significant drop offs. Customers should be triggered for KYC based on risk or value of transactions, not by time.”
Amazon India hopes that RBI will “reinstate the proportional KYC framework and reduce friction in new account set up which has been created due to mandatory collection of officially valid document numbers at time of customer onboarding.”
Note that February 28, 2018, was the last date for completing the mandatory Know Your Customer (KYC) process for prepaid wallet customers. Those who missed the deadline will still be able to use the money already in the wallet, but will not be able to load more money.
In regards to when UPI will be made available to load money into Amazon Pay, the company said that they “are testing UPI with our mobile customers and learning ways in which we can continuously improve their experience.”
Earlier: Amazon has invested a further Rs 195 crore into its digital wallet service Amazon Pay, through the Singapore-based Amazon Corporate Holdings and the parent company Amazon.com Inc, reports ET.
In 2017, the e-commerce major made several investments into Amazon Pay, including:
In October 2017, Amazon Pay also increased its share capital by five times to Rs 2000 crore. 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.
Besides making payments for purchases on Amazon India’s marketplace, Amazon Pay can also be used to pay for a number of other services and at physical outlets, including RedBus and AbhiBus for bus tickets, Faasos and Box8 for food ordering, movie and event tickets on BookMyShow, for the chat-based digital assistance service Haptik, and at Café Coffee Day outlets among others. The company had also started testing mobile recharges, in August last year.
UPI Payments option
Last month, Amazon India added a UPI based payment option for its customers. Currently, the UPI payment option is available for transactions below Rs 10,000 and is only accessible on Amazon India’s mobile app.
In October last year, Amazon India head Amit Agarwal had said that Amazon Pay will soon be integrated with UPI. At the time, an Amazon spokesperson had told MediaNama that the company has been closely monitoring UPI technology, especially customer user experience, platform and network stability, and transaction success and failure rates among others. The spokesperson had also mentioned that they “have started engaging with several players in the UPI ecosystem to build our UPI plans and potential partnership opportunities. Before we enable UPI on Amazon, we are working towards building a product that provides a great customer experience.“
*Updated with Amazon India’s response.