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As per the report, the e-commerce giant may launch a standalone app for its digital payments service, Amazon Pay, to increase the visibility and usage of the payment platform, which is currently embedded within Amazon’s main e-commerce app.
Sources familiar with the mater told ToI that the Amazon India has been pondering this shift for about a year. Separating Amazon Pay into its own app could help it achieve wider recognition and boost user engagement, the source added..
Amazon Pay in India offers a variety of financial services, such as money transfers, bill payments, insurance purchases, travel bookings, and investment opportunities in mutual funds and digital gold. However, these services are presently only available through Amazon’s main e-commerce app.
Launching a standalone app for Amazon Pay could provide the company a competitive advantage in India’s fast-growing digital payments market. In July, Amazon Pay processed approximately 72.4 million transactions, making up about 0.5% of all transactions on the Unified Payments Interface (UPI) network.
“If implemented, this move would align with broader industry trends.”Flipkart, Amazon’s primary competitor in India, recently consolidated its fintech offerings into a single vertical two years after separating from PhonePe.According to one source, Amazon has already approached the National Payments Corporation of India (NPCI) for approval. However, these plans are still in the discussion phase and could either be modified or abandoned.
This potential shift in strategy happens as Amazon continues to invest significantly in its Indian operations. In June, the company infused Rs 600 crore (approximately $72 million) into Amazon Pay India. This brings its total investment in the payments arm to Rs 1,950 crore.