In the next few months it will get into railways, utilities and insurance payments
Amazon India has received a payments wallet license from the Reserve Bank of India, as it looks to boost savings and retain customers within is ecosystem as it takes on rivals Flipkart, and Alibaba’s Paytm.
The US retailer is looking to allow users to shop on its platform, make offline payments, buy bus and rail tickets and pay for utilities through its digital wallet. This will put the company squarely against Paytm and Flipkart-owned PhonePe, apart from number two player FreeCharge.
All three players are betting on the payments space to engage the growing base on online shoppers in India. Paytm’s parent Alibaba, pioneered the use of digital wallets to dominate the e-commerce market in China.
PhonePe uses the Unified Payment Interface (UPI), the peer to peer payment technology platform that allows users with a mobile phone transact digitally. Flipkart is looking to aggressively invest in PhonePe from its $ 1.4 billion kitty it raised earlier this week from Tencent, Microsoft and eBay.
“We are pleased to receive our PPI license from the RBI. Our focus is providing customers a convenient and trusted cashless payments experience. RBI is on the process of finalising the guidelines for PPIs. We look forward to seeing a continuation of the low limit wallet dispensation with simplified KYC & authentication,” Sriram Jagannathan, VP Payments, Amazon India. (readmore…)