Amazon Pay, the digital payment arm of the e-commerce giant, is rapidly expanding its electronic payment, credit and financial services across the country. The company is rapidly making inroads into the burgeoning Indian digital payment market, including Tier 2 and Tier 3 towns and villages, where it is experiencing very strong growth and competes with PhonePe, owned by Walmart, Paytm backed by Alibaba and Google Pay.
Amazon Pay UPI (Unified Payments Interface) recently added 5 crore customers in India. Amazon Pay is offering daily rewards through the Great Indian Festival Corporate Month-long Festive Selling Event to all customers using Amazon Pay UPI to shop, pay bills, pay at online merchants, and send. money to their contacts. Customers use the Amazon app to pay at 2 crore local stores by simply scanning any UPI QR (Quick Response) code. Over the past year, over 75% of its customers using Amazon UPI have come from Tier 2 and Tier 3 cities.
âAt Amazon Pay, we are working on a number of innovations primarily focused on three axes. First, how to make the underlying payment rails more secure, resilient and faster, âsaid Mahendra Nerurkar, CEO and Vice President of Amazon Pay, in an interview. âThe second area is making digital payments convenient for customers by simplifying complex experiences like real-time KYC (know your customer) or real-time credit checking. The third area, where we plan to make a big difference, would be reaching people who are used to cash and are new to accessing credit.
Nerurkar said about 85 percent of the country’s population still earns cash and only 2-3 percent have credit cards.
The company is expanding its credit services with Amazon Pay Later. The company said it is the largest product and the first of its kind that allows users to pay next month with the EMI (Equivalent Monthly Payment) option. Amazon Pay Later received 2 million customer registrations. In one year since its launch, the platform has recorded 10 million transactions at a payment success rate of 99.9%.
The Amazon Pay ICICI Bank credit card offers customers rewards on Amazon and anywhere else they shop. The company said it has become the fastest co-branded credit card to reach 2 million customers with one million cards issued in the past nine months. It is the largest VISA-enabled contactless card wallet today and sees the highest adoption of this feature for a wallet of its size. Over 80% of new customers use this card fully digital, without any physical interaction. Customers can easily request it online and receive it instantly with a digital KYC (know your customer) that takes less than 60 seconds.
The company has leveraged its logistics fleet to help customers load money into their wallets at their doorstep. âI’m really, really excited about the ‘load money at the door’ product,â Nerurkar said. âIt serves the largest segment of cash customers. And there, we see a much higher adoption in the cities of level 2 and 3. â
Amazon is also expanding its financial services portfolio. Amazon Pay India recently announced its collaboration with the Kuvera.in investment platform. This would make it easier for clients to invest in mutual funds, term deposits and more over time. The platform also offers two and four wheel insurance policies, in partnership with Acko General Insurance Ltd. Customers can purchase insurance in under two minutes.
Amazon is also making several investments in FinTech in the country, where partners enable innovations and serve the company’s main strategic goals. He has supported Capital Float, ToneTag (harnessing the power of sound through sound wave technology) and BankBazaar (an online marketplace for financial products)
âWe offer digital gold which is our first investment product as well as other microinsurance products,â Nerurkar said.
Amazon Pay also allows SMEs (small and medium enterprises) to be part of the formal economy. It offers the ability to accept digital payments, strengthen a merchant’s digital footprint and grow their business. This reduces reliance on cash management (remember to give exact change). The platform now has over 6.5 million merchants integrated as Amazon Pay merchants in over 350 cities and towns.
âOver the past six months, the population of offline merchants, especially for us, has grown dramatically,â Nerurkar said.
The platform also has the âAmazon Pay For Businessâ mobile application to simplify the journey for merchants to accept digital payments. Available on Android, the app can be used by small and medium businesses across the country to register, generate a unique QR code, and start accepting digital payments in minutes. Customers can use any UPI app to scan Amazon’s QR and make payments to these businesses.
Amazon Pay has also launched a voice notification feature for the âAmazon Pay for Businessâ app in English and Hindi. Small businesses across India can have a hassle-free experience by eliminating extra minutes spent during peak hours waiting for notification of payments received through this feature. In addition to these programs, the company said it also offers loans to its sellers at low interest rates.
Amazon Pay makes affordability easy and offers multiple deals during Amazon Great Indian Festival. During the month of the Great Indian Festival (GIF) 2021, customers can experience several unique affordability propositions across all categories. Customers save up to Rs 5,000 during the GIF by making daily payments like sending money, paying bills and booking tickets to unlock shopping rewards which can be redeemed during this phase.
They can also get offers from major partner banks, free EMIs on debit and credit cards, Bajaj Finserv Amazon Pay Later, and offers from other major credit and debit cards. To help customers maximize their budget, Amazon Pay Later is offering instant credit of up to Rs. 60,000.
âThe fact that we are looking for a much larger set of banks that are offering their discounts and offers on the site, just allows more customers to participate,â Nerurkar said.
Amazon said it was working diligently to simplify and democratize digital payments in the country. âOverall I’m really excited and proud of all that we’ve been able to evolve (regarding) the ability to include a really wide range of customers in the online shopping festival,â Nerurkar said.
Customers can use the “Speak to Shop” feature on the Amazon shopping app or just ask Alexa on their Amazon Shopping app (Android only) too, to pay utility bills, load money into Amazon Pay or go to the Small Business Store or the fun area.
âIf you just think of the Amazon Pay balance, the ability for us to engage cash customers in digital selling is really amazing,â Nerurkar said. âWe can get customers to load money at their doorstep with 99% PIN codes in India and help them participate in this digital festival. “