In the race to dominate India’s digital payments sector, Amazon is making strategic moves to gain footing with its Amazon Pay service, according to The Economic Times.
Amazon Pay has yet to secure a spot on the payments leaderboard in India, however, with a renewed focus on mobile wallets, the company aims to compete with industry leaders like Paytm Payments Bank and WhatsApp.
Data from the Reserve Bank of India revealed that Amazon Pay created 62.8 million wallets as of April 2023, which pales in comparison to competitors. Paytm Payments Bank, for example, boasts more than 500 million wallets in India.
One of the primary challenges Amazon Pay faces is achieving discoverability within its larger e-commerce app—i.e., many people don’t know it exists. To address this issue, the company has introduced a shortcut feature, allowing users to access the Amazon Pay micro app directly from their home screens. While there are ongoing internal discussions about the possibility of launching a separate app, Amazon remains focused on solving customer problems within its existing app.
Amazon Pay has successfully diversified into credit and insurance services in India, setting it apart from other payment applications. Since its originations 2019, the platform has offered credit to more than 10 million customers. The ICICI Bank-Amazon Pay credit card has also gained significant traction, with roughly 3 million cards issued as of March 2022.
In the grand scheme of things, Amazon’s efforts to bolster its payments business align with broader trends in the fintech and tech world. The company recognizes the immense potential of the market in India, where digital payments are rapidly gaining popularity. By addressing discoverability challenges, diversifying into credit and insurance services, Amazon Pay aims to position itself as a comprehensive and convenient financial solution for a broad swath of the Indian population.
