Amazon is bulking up its Indian payments processing presence by announcing its intended acquisition of privately held Indian payments firm, Emvantage. The Indian company’s focuses on E-commerce through its gateway merchant applications in mobile payments and prepaid wallets.
Amazon.com Inc (AMZN.O) said it has acquired Indian payments processor Emvantage Payments Pvt Ltd for an undisclosed sum.
Emvantage’s employees will join Amazon’s India unit that will use the company’s technology on its e-commerce website, Amazon said in a statement.
Amazon has been rapidly expanding into India’s fast growing e-commerce segment that is likely to grow to $220 billion by value of goods sold by 2025.
Amazon’s voracious appetite for growth, will continue unabated throughout all global regions, including not so surprising moves in markets with huge upside potential, such as Indian E-commerce. The bigger picture is that Amazon is looking to expand not only its core online businesses, but also other large-scale vertical integration plays, such as they have done with Amazon Web Services in cloud computing. Next up is the global shipping and logistics market, which they are circling around and have invested in small steps by launching their own local package delivery service. Additionally, Amazon may expand its minority stake in French package delivery company, Colis Privé. Can current partners FedEx, UPS, and others soon be Amazon’s future competitors?
Overview by Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group
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