“The mobile wallet competition is getting hotter: Amazon gets a license to launch e-wallet, setting up an eye to take on established rivals such as Paytm and Freecharge”.
Amazon India has received the Reserve Bank of India’s (RBI) approval to launch its own digital wallet in India which might be a critical turning point for the existing wallet players fighting for a bigger piece of the pie since demonetization.
Amazon’s e-wallet will be wider in scope than its Pay Balance service and will not be restricted to Amazon-based transactions and simply like Paytm, MobiKwik and other wallets, its wallet could be utilized at other places too.
Speaking to the media, Sriram Jagannathan, Vice President of Payments at Amazon India, said “We are pleased to receive our PPI (prepaid payment instruments) licence from the RBI. Our focus is providing customers with a convenient and trusted cashless payments experience. RBI is in the process of finalising the guidelines for PPIs. We look forward to seeing a continuation of the low limit wallet dispensation with simplified KYC & authentication.”
He further added that “this will allow us to help customers adopt digital payments at scale and thereby contribute towards making India a cashless economy.”
Amazon received the PPI license from RBI in last week of March. After dominating the e-commerce market, Amazon India now eyeing
on a bigger piece of the pie by entering into the digital wallet world
which may be a decisive turning point for existing digital wallet players like Paytm, Freecharge, Mobikwik, etc.
However it would be interesting to know that Unified Payment Interface (UPI) which was launched in April last year, is now becoming the most favored platform for conducting a digital transaction.
Around 2 lakh transactions are now happening daily on UPI platform. As per the latest number revealed by RBI, the UPI based transaction is increased substantially by 20 percent from Rs 2000 crore worth of digital transactions were successfully processed during the month of March 2017, compared to Rs 1660 crore in January 2017.
According to the RBI information, Rs 1800 crore worth of merchant transactions happened on eWallets in the month of March, down from Rs 2100 crore in January. Hence, transactions from eWallets are now directly transferring to UPI platform.
It would be really delightful to watch how Amazon.in makes a dent in the market of Paytm, Freecharge and
other payment transfer services.
We will keep you updated.
Do you think digital wallets can fight against UPI, which is independent of any platform, and supported majorly by the government-promoted BHIM? Do let us know by commenting right here!