Amazon is considering launching a standalone app for its digital payments service, Amazon Paymentin India. This move is aimed at improving the usability and visibility of the payment platform, which is currently integrated into Amazon’s main e-commerce app. According to a report by Techcrunch, Amazon has been contemplating this change for about a year, believing that a dedicated app could help Amazon Pay gain greater recognition and increase user engagement in India’s rapidly growing digital payments market.
Amazon Pay offers a wide range of financial services in India, such as money transfers, bill payments, insurance purchases, travel bookings, and investments in mutual funds and digital gold. However, these services are only accessible through Amazon’s e-commerce app, limiting their visibility and, potentially, adoption among users. A standalone app could provide a more targeted user experience, allowing Amazon to compete more effectively with other digital payment platforms in India, such as Google Pay, PhonePe, and Paytm.
The potential app would align Amazon Pay with broader industry trends, especially after Flipkart’s recent decision to consolidate its fintech offerings into a single vertical after parting ways with PhonePe two years ago. Amazon Pay processed around 72.4 million transactions in July 2023, accounting for about 0.5% of all transactions on India’s Unified Payments Interface (UPI) network. While this figure is modest compared to other market players, the introduction of a standalone app could boost Amazon Pay’s market share.
Amazon has reportedly approached the National Payments Corporation of India (NPCI) for approval to go ahead with this plan. However, talks are still ongoing and the plan could change or be dropped altogether. This strategic consideration comes at a time when Amazon continues to invest heavily in its Indian operations, including a recent injection of Rs 600 crore (roughly $72 million) into Amazon Pay India, taking its total investment in the payments division to Rs 1,950 crore.
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