Amazon Invests $41 Million in Amazon Pay India

Core Insights - Amazon has invested Rs 350 crore (approximately $41 million) into Amazon Pay India to enhance its competitive position in the digital payments market [1] - Amazon Pay is currently the eighth-largest player in the Unified Payments Interface (UPI) sector, aiming to increase its market share against dominant competitors like PhonePe and Google Pay, which together hold about 85% of the market [1] Investment and Licensing - The company received a payment aggregator license from the Reserve Bank of India in February, which is expected to strengthen its merchant payments business [2] - Amazon Pay has also been approved for a prepaid payments instrument or wallet license, expanding its service offerings [2] Digital Currency Initiatives - Amazon Pay was among five payment firms that applied to participate in the Reserve Bank of India's digital currency pilot program to facilitate eRupee transactions [3] - The pilot program, initially limited to banks, was expanded in April 2024 to include approved payment firms [3] Long-term Investment Plans - In June 2023, it was reported that Amazon plans to invest$ 26 billion in India by 2030, which includes significant investments in Amazon Web Services and its eCommerce business [4] - Digital wallets are increasingly popular in India, with 55% of retail purchases being made through this method, indicating a growing trend in both online and offline retail [4] Merchant Adaptation - Indian merchants have adapted to consumer preferences by offering a variety of digital shopping and payment features, achieving a high Global Digital Shopping Index (GDSI) score, second only to the UAE [5]