After ruling the e-commerce sector, Amazon is launching their e-wallet in India. This e-wallet would be called Amazon Pay. Technology is getting advanced day by day and is completing moving onto to a different level. Founded in 1994, Amazon is India’s largest online store and also an American electronic commerce and cloud computing company. Reserve Bank Of India (RBI) has approved Amazon India to launch their own digital wallet in India. Amazon, America’s online retail will be stepping into the digital payments business.
This digital wallet by Amazon will be very similar to something like PayTM.
Prepaid Payment Instrument Licence
Almost a year ago, Amazon India had applied for PPI (Prepaid Payment Instrument) Licence. Since Amazon India has got an approval from RBI to launch their own digital wallet, they are also set to challenge their rivals Paytm and Freecharge. Amazon’s digital wallet will not be restricted to only Amazon-based transactions but would be broader in scope than their Pay Balance.
Amazon had launched a pay balance service in December. The pay balance service was launched to boost the cashless transactions. Amazon’s pay balance services also work in the same manner as other mobile wallet services work except the fact that it was restricted to transactions on Amazon. Though Amazon has confirmed their digital wallet services but it is still not sure about the launch date.
Amazon’s E-Wallet Services in India
Vice President of payments at Amazon India said that they are delighted after receiving a PPI license from RBI.He said that their focus is to provide a trusted as well as convenient payment experience. Though, the guidelines of the PPI are still not finalized by the RBI.This move of Amazon India will help the Indian customers in adopting a digital payment at scale and will also help in making India a cash-less economy.
Amazon’s new wallet services will be operating just like other digital wallet services like Paytm. The customers will be asked to undergo a two-step authentication process for online payments through a credit or debit cards. This will make the process smoother and simpler for the online shopping customers.
Flipkart’s startup PhonePe internet Pvt Ltd was started in September 2016. They launched an app which was based on UPI (Unified Payments Interface) platform. Amazon India has been given a PPI licence in late-March. The development process will be starting once RBI issues their guidelines. There will be strict norms for all the digital wallet companies in order to focus on customer security. RBI also raised the minimum capital requirement by nearly five times for all the mobile wallet operators.
Amazon’s Vice President hopes that RBI would continue to encourage the consumers to shift from cash behavior to digital wallets.