Amazon has steadily ramped up its investments in India over the last two years. More so now, as it battles for leadership position in the domestic e-commerce market. A smaller but significant arm of its business seems to be gaining in focus now. After rolling out its digital wallet, Amazon Pay, in India late last year, the Seattle-based giant is reportedly pumping in $245 million (or Rs 1,600 crore) in the business. The development was first spotted by VCCircle in Amazon Pay (India) Pvt Ltd’s filings with the Ministry of Corporate Affairs. Also Read - Jeff Bezos travels to space today: How to watch Blue Origin rocket launch onlineAlso Read - Elon Musk now wants to travel to space but not on SpaceX rocket
While the exact amount of investment is conjecture based on Amazon’s current share capital, it is unlikely that any external sources of funding would be utilized. Amazon always funds its operations internally. “We remain committed to our India business with a long-term perspective to make digital payments a habit for Indian customers and to invest in the necessary technology and infrastructure to grow the entire ecosystem,” an Amazon spokesperson was quoted as saying. ALSO READ: Amazon Great Indian Sale: Amazon Pay sees 20 times more top ups Also Read - Huawei Band 6 launched to take on Mi Band 5, brings SpO2 monitor at budget
After being available as a payment option for Amazon-only purchases for a while, Amazon Pay extended to other third-party services like dining out, movie and travel ticketing, bus rides and so on. Users in India can also use Amazon Pay balance for prepaid recharges and bill payments. “With no additional authentications required, customers get the benefit of fast and smooth checkout. Amazon Pay Balance helps customers store balances for essential items and solves the pain point of tendering exact amount of cash at the time of delivery,” Amazon India said at the launch. ALSO READ: Amazon Pay now supports prepaid mobile recharge; here s how it works
In its recent Great Indian Festival Sale, Amazon India incentivised users of Amazon Pay by offering them a 20 percent cashback on every top-up. Much like its rival Flipkart, which offers extra discounts on PhonePe transactions, Amazon too is pushing wallet adoption with freebies. It announced that Amazon Pay transactions shot up more than 25X during the festive sale. In general, cashless transactions have gone up significantly since demonetization in November 2016. Riding on the government-backed Unified Payments Interface (UPI), many global tech giants are rolling out their own payment services in India. Amazon too is rumored to be working on a UPI-led payments solution.