US-based ecommerce giant Amazon has infused INR 450 Cr into Amazon Pay India, its payments arm. As per the regulatory filings accessed by Inc42, Amazon Pay India will be allotting 449,955,036 equity shares to Amazon Corporate Holdings and 44,964 equity shares to Amazon.com.incs Limited.
It is worth noting that the capital infusion has come ahead of festival season where Amazon will go head to head against Walmart-owned Flipkart, IPO-bound Nykaa, Reliance-owned Ajio, among others.
Earlier this month, Amazon Pay announced to offer deposit booking services for its customers in the country. Amazon Pay announced its ties up with investment platform Kuvera.in through which Amazon Pay’s customers will be able to invest in mutual funds and fixed deposits.
The move came on the heels of its rival Google Pay launching a similar facility with Equitas Small Finance Bank for allowing its users to book deposits, which has already invited regulatory attention.
Last year, Amazon Pay launched credit card payment, which will allow the customers to make their credit card payments through internet banking or unified payments interface (UPI).
Amazon Pay UPI competes against the likes of payment giants such as PhonePe, Google Pay, Mobikwik, and Paytm, among others. Amazon claims that its Amazon Pay UPI is used by 50 Mn Indians in the country.
However, the payment arm of Amazon is yet to make a dent in the UPI transactions which recorded 3.5 Bn transactions in the month of August with a total volume of around INR 6.39 Lakh Cr . Among its competitors, PhonePe continues to lead the market with transaction volume of 45.64% followed by Google Pay’s 35.3%.
Ever since the launch of UPI, digital transactions in the country have reached new heights. As per a report by ACI worldwide, India retained the top spot in terms of digital transactions worldwide with 25.5 Bn real-time payments transactions, followed by China. South Korea is in the third spot with 6 Bn transactions whereas Thailand stood at 5.2 Bn digital transactions.