Amazon Pay India, the digital payments arm of e-commerce giant Amazon India, is focusing on greater penetration of offline payments this fiscal with an aim to introduce new payment methods and improve security.
Instead of focusing on a single segment, Amazon Pay offers a variety of payment options such as Unified Payments Interface (UPI), credit cards and wallets, he added.
“We see an opportunity to penetrate deeper into various offline payment methods and continue to invest in security to control and reduce fraud,” Bansal said. Published a report titled “Payment Methods in Urban India” in collaboration with Kearney Consulting.
Bansal said that after Amazon Pay’s partnership with ICICI Bank for credit cards, payment aggregators are exploring further opportunities to collaborate with banks in the credit card space and with the government’s Open Network for Digital Commerce (ONDC).
Amazon Pay-ICICI Bank Credit Card has over 4.2 million users, which is about 28% of the total private bank credit card user base as of June 30. It also launched UPI-based voice payments via Alexa-enabled devices.
Amazon Pay has taken several steps to strengthen its consumer and merchant payments business, including obtaining a prepaid payment instrument license and a payment collection license from the Reserve Bank of India.
However, Amazon’s market share in retail payments in India is much lower than that of Google Pay, PhonePe and Paytm, which together hold about 90% of the market.
Opportunity for a small town
Bansal also highlighted the opportunities presented by the increasing adoption of digital payments in smaller cities. According to the Amazon Pay-Kearney report, 65% of consumer transactions in Tier 2 and Tier 3 cities took place digitally, and 75% took place in metros. The report is based on a sample survey of 120 Indian cities.
“It is a positive surprise that there used to be a big gap between small towns and big cities like Mumbai. Now the gap is only 10%, which is a significant reduction,” Bansal said. Payment in tier 2 and 3 cities.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.