Amazon Invests INR 225 Crore in Indian Digital Payments Arm, Amazon Pay
In a bid to strengthen its position against global competitors, e-com giant Amazon has invested INR 225 crore in its Indian digital payments business, Amazon Pay. based on regulatory filings accessed by Tofler, the new funding has come from Singapore-based Amazon Corporate Holdings Private Limited and Mauritius-based entity Amazon.com.incs Limited Company.
The US-based firm currently faces stiff competition in the Indian payment market from Walmart-owned PhonePe, Paytm, and Google's mobile payment service Google Pay.
Amazon Pay has raised INR 225 crore in March earlier this year from the same entities. The fresh funding raises the total capital infusion in Amazon’s payment arm to INR 450 crore IN 2021. Amazon had also invested INR 700 crore into Amazon Pay last year in October 2020, just ahead of the festive season.
The investment comes at a time when the adoption of e-commerce and digital payments has been on the rise owing to the second wave of the Covid-19 pandemic that has hit the country hard.
It has been estimated that the Indian Digital payments sector will grow 5x to reach $1 trillion by 2023. This growth will be fuelled largely by the increase in mobile payments across the country, according to financial services company Credit Suisse’s report.
Competition in the digital payments space is also heating up steadily. In April this year, Amazon Pay had empowered over 5 million neighborhood stores and businesses with its digital payments infrastructure. These SMBs (small and medium businesses), most of whom earlier transacted only in cash, can now accept payments from their customers using Amazon Pay’s QR (quick response) code.
The US-based firm currently faces stiff competition in the Indian payment market from Walmart-owned PhonePe, Paytm, and Google's mobile payment service Google Pay.
Amazon Pay has raised INR 225 crore in March earlier this year from the same entities. The fresh funding raises the total capital infusion in Amazon’s payment arm to INR 450 crore IN 2021. Amazon had also invested INR 700 crore into Amazon Pay last year in October 2020, just ahead of the festive season.
The investment comes at a time when the adoption of e-commerce and digital payments has been on the rise owing to the second wave of the Covid-19 pandemic that has hit the country hard.
It has been estimated that the Indian Digital payments sector will grow 5x to reach $1 trillion by 2023. This growth will be fuelled largely by the increase in mobile payments across the country, according to financial services company Credit Suisse’s report.
Competition in the digital payments space is also heating up steadily. In April this year, Amazon Pay had empowered over 5 million neighborhood stores and businesses with its digital payments infrastructure. These SMBs (small and medium businesses), most of whom earlier transacted only in cash, can now accept payments from their customers using Amazon Pay’s QR (quick response) code.
