Amazon Considers Moving Amazon Pay into Standalone App in India
Amazon is contemplating shifting its payments offerings in India into a standalone app, three sources familiar with the matter told TechCrunch. The e-commerce giant aims to boost usage of Amazon Pay in the country by decoupling its payments service from the primary e-commerce app.
Current State of Amazon Pay in India
Amazon Pay is currently housed within the company’s primary e-commerce app in India, allowing users to transfer money to individuals and merchants, pay bills, purchase insurance and travel tickets, invest in mutual funds and digital gold, and buy travel tickets. However, some executives at Amazon believe that Amazon Pay is not receiving adequate attention on the e-commerce app.
Reasons Behind Considering a Separate App
The sources stated that Amazon has been contemplating decoupling its payments service from the e-commerce app for about a year and intends to proceed with the plan in the coming months. One of the reasons behind this decision is that Amazon sees a separate app as a way to gain wider recognition for the payments platform in India.
Challenges Ahead
However, there are challenges ahead for Amazon. The company has already reached out to the National Payments Corporation of India (NPCI) for approval, but it will likely have to issue fresh UPI IDs to users. This requirement is seen as a thorny issue by some within Amazon.
Industry Context and Competition
Amazon isn’t alone in weighing similar options in India. Its chief Indian rival, Flipkart, has consolidated its fintech offerings into one vertical late last month, two years after separating from PhonePe. This move highlights the competitive landscape of the payments market in India.
UPI Transaction Data
According to official data, Amazon Pay processed about 72.4 million transactions in July, accounting for about 0.5% of all transactions on the Unified Payments Interface (UPI) network. In comparison, Walmart’s PhonePe processed 6.9 billion transactions, while Google Pay handled 5.3 billion.
Implications and Outlook
If Amazon proceeds with its plan to create a standalone app for Amazon Pay, it could lead to increased usage of the payments platform in India. However, the company may alter its plans or abandon the idea altogether due to various challenges it is facing in the country.
Conclusion
Amazon’s decision to consider shifting its payments offerings into a standalone app in India highlights the competitive landscape of the fintech market in the country. With Flipkart consolidating its fintech offerings and Amazon weighing similar options, it will be interesting to see how these developments unfold in the coming months.
Amazon Pay Ranks Sixth on UPI Transaction Data
Amazon Pay ranks sixth among apps on Unified Payments Interface (UPI), a payments network that is the most popular way Indians transact online. In July, Amazon Pay processed about 72.4 million transactions, accounting for about 0.5% of all transactions on the network.
Comparison with Other Players in India
In comparison, Walmart’s PhonePe processed 6.9 billion transactions, while Google Pay handled 5.3 billion. This data highlights the dominance of other players in the Indian fintech market.
Industry Experts Weigh In
Industry experts have weighed in on Amazon’s decision to consider shifting its payments offerings into a standalone app. "A separate app for Amazon Pay could help the company gain wider recognition and increase usage of the platform," said one expert. However, others caution that the move may not necessarily lead to increased adoption.
Challenges Ahead for Amazon
Amazon faces several challenges ahead in implementing its plan to create a standalone app for Amazon Pay. The company will have to obtain approval from the National Payments Corporation of India (NPCI) and issue fresh UPI IDs to users. These requirements are seen as thorny issues by some within Amazon.
Industry Context
The decision to consider shifting payments offerings into a separate app highlights the competitive landscape of the fintech market in India. With Flipkart consolidating its fintech offerings and Amazon weighing similar options, it will be interesting to see how these developments unfold in the coming months.
Amazon’s Fintech Ambitions in India
Amazon has been aggressively expanding its fintech presence in India. The company aims to increase usage of Amazon Pay and provide a wider range of financial services to users in the country.
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