Amazon India is creating Fintech ecosystem for Amazon Pay

Jeff Bezos-led Amazon is betting most aggressively in the payments market in India and investing big amounts in the eCommerce services. The company is also invested Rs 27,290 crore in the flagship unit Amazon Seller Services.

Amazon India’s decision is a significant entry in the India financial digital payments segment.

Amazon India is already announced that its user can transfer money from their account to other users account by UPI payment, one of the most popular routes for making online transactions in the country.

Amazon Pay Mobile layout
Amazon Pay Mobile layout

NPCI report published in Business Standard, according to report UPI’s value grew by 700% in 2018 while total digital payments fell 1%.

UPI passed the Rs one trillion milestone for monthly value in December 2018, increasing nearly 8 times over the previous year. It also touched a monthly volume of over 600 million, four times the volume of UPI transactions in December 2017.

according to data published by National Payments Corporation of India (NPCI).

Amazon Pay is increasing its stack in the segment, and parent company Amazon invested more than Rs. 2000 crore in the Amazon Pay.

In April this year, Amazon India invested $22 million in the online lender Capital Float. By the move, Amazon provides easy credit option to the customer and the same amount flow through the Amazon pay.

The ecosystem, the easy credit limit, payment options, and eCommerce will work for the progress of the Amazon sales as well for the consumer.

The company also invested 12 million in Insurtech startup Acko General Insurance Ltd. Amazon also has exposure to the other Insurtech startup BankBazaar.

The company is building an ecosystem for its core business of Ecommerce and Amazon Pay by supporting all these startups. Amazon taking ground-level steps to make a best and strong position for their long term benefit in eCommerce financial sector.

The company is building an ecosystem for its core business of Ecommerce and Amazon Pay by supporting all these startups. Amazon taking ground-level steps to make a best and strong position for their long term benefit in eCommerce financial sector.

The move, share of amount form a user to other via UPI also provides more options to the consumer to use the fund to pay for other purchases, like booking tickets from BookMyShow, order pizza from Domino’s and pay bills by Amazon Pay.

These moves are for the upgrading of the combination of business like eCommerce, retail financing, easy payments to support Amazon Pay and E-commerce business.

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