Amazon Pay gets top-up of ~2.3 bn
Online marketplace giant Amazon India has infused ~2.3 billion in its digital wallet Pay, according to data sourced from business intelligence platform Paper.vc. According to documents, Amazon Pay (India) has allotted 230 million equity shares worth ~2.3 billion to its existing shareholders — Amazon Corporate Holdings and Amazon. com.inc — on rights basis.
The resolution was approved on June 28, it said. When contacted, an Amazon spokesperson said the company’s focus was to make digital payments “the most trusted, convenient and rewarding choice for customers”. “We continue to explore ways to do this, in partnership with banks, processors, fintech firms and ecosystem partners. We have earlier invested in creating new transformational services such as cash loading into the wallet at doorstep,” the spokesperson said.
The spokesperson said the company planned to develop new services for customers and continue to drive adoption for Amazon Pay. “We are committed to the long-term vision of a less-cash India and continue to invest in experiences, which reduce customer friction, improve affordability and foster everyday habits, thereby building preference for digital payments,” the spokesperson said.
The fund infusion is a part of the $5 billion investment that Amazon has kept aside for India. According to sources, the investment would be used to gain more users as well as add services to the digital wallet.
The company over the past one year has been promoting its wallet and is giving cashbacks and discounts. Recently to celebrate the fifth anniversary of Amazon in India, its top boss and founder Jeff Bezos decided to give away cash back as a ‘thank you’ gesture in their Amazon Pay wallets.
Amazon, which believes in creating a one-stop shop solution for everything starting from groceries, fashion, automobile accessories, books to music and entertainment, has been working overtime to hinge it all on its digital wallet. Experts said, while Amazon might be fighting the online e-commerce war with Flipkart, it is getting ready to take on Alibaba and SoftBank and Vijay Shekhar Sharma's Paytm in India. “We are not focussing on a number of merchants but the ones which are used by customers regularly. Right now, large part of the focus is to provide the best online digital experience. We are focussed on areas such as swiggy. Fresh Menu, Bookmy show and Yatra. We are also working with portals such as Urban Ladder. Currently, there are 100 top merchants on the platform,” said Amazon Pay’s India Head Mahendra Nerurkar. The company, which on Monday started its global Prime members- only event Prime Day sale, is using its wallet to provide heavy discounts on deals. Sources said the company had been working on many cash back schemes on payment via Amazon Pay to incentivise the use of the wallet. The company is planning to extend credit services for people who do not have a credit card but have a credit score. It has been working with a large number of banks and NBFCs to come up with various solutions. Amit Agarwal, senior vice-president and country manager at Amazon India, had recently said they would provide credit to its millions of users