Digital Payments now account for 60% of Amazon India's transactions

A little over a year after demonetisation, Amazon India says digital payments now account for over 60% of its total transactions as compared to less than 50% in 2016.
 
A large part of this growth is being driven by the Amazon Pay wallet, as balance loaded by customers grew 409% year-on-year on the back of aggressive incentives offered by the company. Amazon Pay wallet, which was launched in June 2017, now accounts for 48% of all digital transactions on the platform.
 
"We are now seeing 60% of transactions being done through online payment methods, across cards, net banking and use of Amazon Pay balance. Even in the remaining offline transactions, many customers are opting for our pay link options as well as PoS (point-of-sale) devices and cash reloads to the wallet," said Mahendra Nerurkar, newly-appointed chief executive of Amazon Pay.
 
As Amazon India steps up the focus on payments business, it has also shuffled the structure of the team. Former payments head Sriraman Jagannathan has taken up a larger role to lead financial services across Amazon India as the company looks to push digital payments to more customers and offer services based on their transaction data.
 
The move is similar to rival Flipkart, which recently appointed its chief technology officer Ravi Garikipati as the head of its financial technology department. Consumer-facing payments business is done through unit PhonePe, which competes with market leader Paytm.
 
Nerurkar was appointed the head of Amazon Pay with effect from December 1, 2017, as per filings with the ministry of corporate affairs (MCA), and will report to India head Amit Agarwal. He has been with Amazon since 2009, and was also part of Amazon's launch of Junglee.com in India.
 
"For reasons to balance short-term growth with the long-term strategy of Amazon Pay, Mahendra Nerurkar will be the new CEO while Sriraman Jagannathan, vice-president, will continue to lead the board of Amazon Pay with a specific focus on long-term strategy and new initiatives," the company said in a statement. All of Amazon's payment and financial services are clubbed under the entity Amazon Pay India.
Amazon Pay is also set to launch UPI support, which is currently in a beta stage. Amazon is also aggressively using its wallet instrument on third-party merchant sites across food, travel, movie tickets and mobile recharges and bill payments.
 
The company has tied up with merchants such as BookMyShow, FreshMenu, redBus, Housejoy, Yatra and Haptik where customers can use Amazon Pay.
 
"In contrast to our US customers, who mainly use Amazon payments for other e-commerce purchases, in India, customers are largely using Amazon Pay for bill payments, mobile recharges and for movies and food," Nerurkar said.
 
Third-party tie-ups bring revenues through transaction fees. Amazon Pay made revenues of ₹4 crore in FY17, as per MCA filings. The company did not share what the estimated revenues for the current financial year will be.
 
However, the main channel of monetisation of such payment data of customers will be through offering financial services such as loans and insurance.
 
ET reported last month that Amazon is in talks to invest in lending startup Capital Float and use the latter's tech for customer financing. Flipkart is also in talks with several digital lending startups.
Shoot

Trending News

Why Amazon’s Flipkart bid is just not high enough

Selling without MRP, expiry dates to cost etailers

TCS hits $100Bn market cap: A new phase for India Inc?

Snapdeal posts Rs 4,647 crore net loss in 2016-17

Flipkart-Walmart deal: What it means for the etailer and the whole industry

NCLAT stays CCI penalty of Rs 136cr on Google in search bias case

Walmart may rope in Google parent Alphabet for the Flipkart deal

Internet shutdown cost Indian economy $3 billion from 2012-17: Study

Flipkart and Amazon plan mega summer sales in May

International sales now account for 48% of Twitter's revenues

70% of mobile phones buyers in India opt for non-cash payments

Amazon India expects groceries & household products to account for 50% of business in 5 yrs

India to come out with a E-commerce policy framework in 6 months

Online learning platform Career Anna raises Rs 3 Cr funding

Wal-Mart will offer to buy up to 86% of Flipkart

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities