wordpress blog stats
Connect with us

Hi, what are you looking for?

Amazon infuses Rs 225 crore into Amazon Pay India

Amazon.com Inc. has pumped in Rs 225 crore worth of equity funding into Amazon Pay (India) Pvt Ltd, the e-commerce giant’s digital payments arm in India, according to regulatory disclosures. Amazon had previously infused Rs 700 crore worth of equity capital into Amazon Pay in October 2020 and around Rs 1,355 crore in January last year.

According to regulatory filings with the Ministry of Corporate Affairs (MCA), accessed by MediaNama, Amazon Corporate Holdings Pvt Ltd (Singapore) has invested Rs 224.9 crore, while Amazon.com Inc (Mauritius) has invested Rs 2.24 lakh as part of this equity infusion. In October last year, Amazon Pay India increased its authorised share capital to $2.2 billion from $820 million indicating that the company is looking to step up its payment operations in India.

Amazon Pay is the sole payments service provider for Amazon.co.in. It not only offers customers a e-wallet option on top of the Unified Payments Interface (UPI), but also encourages its users to use Amazon Pay to pay their bills, book travel tickets, make investments and buy a few insurance products, among other value added services. It has partnered with ICICI Bank for a co-branded credit card and also has several non-bank lending partners for its Buy-Now-Pay-Later or Equated-Monthly-Installment (EMI) offers.

Speaking at the Digital Lenders Association of India’s 2021 Conclave in January, Vikas Birthire, Product Lead at Amazon Pay Later said that customer engagement and purchases actually increases through BNPL or embedded lending options compared to options provided by traditional lenders.

“While EMI products are enabled by third-parties and function at scale, the problem is that banks or credit card companies keep changing the terms and conditions and eligibility criteria. On the other hand, Amazon Pay Later helps us engage with customers more in terms of repeat buying and utilising the credit limit for multiple products. If a customer buys a phone on EMI once in a year, they can purchase smaller-value items through embedded credit products multiple times,” Birthire said.

According to data from the National Payments Corporation of India, in January 2021, Amazon Pay processed 46.3 million transactions worth Rs 4,044 crore. It is the fifth biggest third-party UPI player after Google Pay, PhonePe, Paytm and Axis Bank.

Advertisement. Scroll to continue reading.

The e-commerce giant has also partnered with ICICI Bank, Axis Bank, Visa India, the National Stock Exchange, BillDesk and Pine Labs to bid for a license to operate a New Umbrella Entity for retail payments.

According to MCA filings, Amazon Pay reported revenues worth Rs 1,370 crore in FY20, up by 64% from the previous year. However, despite the massive surge in users using Amazon Pay and a boost in revenues, the company reported a net loss of Rs 1,868 crore in FY20 compared to Rs 1,160.8 crore in the previous year.

Also Read

You May Also Like

News

Digital payment transactions through Prepaid Payment Instruments — which includes both Mobile Wallets and PPI Cards combined —stood 438.7 million transactions  at the end...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ