E-commerce giant Amazon has reportedly invested INR 590 crore in its digital payment arm Amazon Pay ahead of the Diwali sale bonanza. As per trusted sources, this is the fourth instance of fund infusion in Amazon Pay over the last two years.
Reportedly, Amazon had invested INR 230 crore in Amazon Pay two months ago. The payment arm has received a total of INR 1,212 crore from its parent company. Head of Amazon Pay India, Mahendra Nerurkar had reportedly stated in March this year that the firm would persist with its investment strategy in the payments division in the upcoming quarters.
Sources familiar with the development claim that the latest investment comes amidst the backdrop of Amazon aggressively pushing its payment service beyond marketplace to other online retailers across various sectors such as entertainment, music, books, automobile accessories, fashion, and grocery among others.
According to a report published in The Times of India, Amazon is holding its annual flagship sale starting October 10. Reportedly, Amazon recently unveiled card less EMIs for its select consumers. Amazon Pay EMI offers quick financing options to consumers who may not have access to credit for buying high value products up to INR 60,000 by dividing their purchases into installments at lower interest rates.
A spokesperson of Amazon stated that the focus of the company is to make digital payments the most rewarding, convenient, and trusted choice for customers and to continue to explore ways to team up with ecosystem partners, fin-tech companies, banks, and processors. The company is committed to invest in experiences which improve affordability, reduce consumer friction, and foster everyday habits, thereby contributing toward the long-term vision of a cashless country, the spokesperson added.
Reportedly, Amazon has earlier invested in developing new transformational services such as cash loading in wallet at the customer’s doorstep and further plans to create innovative services to drive adoption of Amazon Pay.
Amazon Pay currently competes with PhonePe, Paytm, and Mobikwik among others, cite sources.