Amazon India is aiming to launch a digital wallet to lure buyers in India towards its online marketplace
Amazon India is planning to introduce digital wallet as an effort to establish an online payments business, possibly through takeovers, 4 persons aware of the matter stated. Digital wallet was launched by its biggest local rival, Flipkart last week as online payments have been quite important in the battle to dominate the online trading market of India, providing greater control to companies over transactions.
According to a source, the organization has started talks with newly emerging payment service providers and digital wallets. In February, the online trading giant purchased Noida based company Emvantage, its first takeover in India
The introduction of the company’s digital wallet in India is probably three months away, stated another source, refusing to be recognized as the others. In United States, a digital wallet was previously launched by the Seattle based company in 2014 but after six months it was shut down.
Ex official of the Citibank Sriraman Jagannathan, who was hired by Amazon India in February to lead its payments business is probably expected to spearhead the unveiling of the digital wallet, stated a person aware of the plans.
Sriraman played an instrumental role in introducing the digital wallet of Bharti Airtel, Airtel Money three years ago. The company didn’t specifically comment on whether it has planned to release a digital walletby saying it was “always exploring” acquisitions. Presently, gift cards are used by Amazon India as pre-paid tools to let buyers buy on its electronic marketplace, providing customers an option to avail these cards up to a limit of $148.86 which according to Indian rules can be applied to digital wallets.
This month, the company provided customers cashbacks on Amazon.in gift cards in its Super Value Day sale provided that they purchased goods offered for a specified minimum amount.
Bengalaru based company Qwik Cilver powers the gift cards of the organization, in which the US company purchased a minority share 2 years ago.
A source stated enterprise might use Qwik Cliver which has been licensed tor run a semi-closed loop wallet to release its digital wallet. Digital wallets’ adoption has fairly been quick in the country.
The digital wallet transactions have grown by more than two times from 65.96 million in the earlier period of the corresponding year to 153.11 million in the most recent October to December quarter, the data provided by Reserve Bank of India has shown. In terms of value, the rise was from around $331.37 million to around $824.5 million.
The Alibaba backed Paytm is the biggest digital wallet business in the country with users totaling at over 120 million. Competitors include Ola Money of cab service provider Ola and Freecharge which is owned by Snapdeal, along with independent companies Citrus, Oxigen and MobiKwik.