The company which started offering wallet services a few years back now offers a host of services ranging from money transfer, bill payment to merchant payments.
It is now looking to step up play in segments such as insurance to credit via Amazon Pay, according to reports.
While about 1 million Amazon sellers use Amazon Pay, over 4.5 million offline merchants offer it. Over About 40 million customers use the unified payments interface (UPI) on Amazon Pay.
Last year Amazon launched UPI for iOS users, the minimum KYC pre-paid instrument (PPI) wallet, scaled up adoption of Amazon Pay ICICI credit card, and launched new ticketing use cases including rights, buses and movies.
The company had said Amazon Pay continues to focus on “security and reliability” to ensure customers experience the ease and convenience of transacting digitally.
“COVID-19 lockdown and social distancing norms impacted our ability to onboard new online merchants as well as perform in-person KYC for our wallet customers; albeit this situation has accelerated development of new remote technology-driven alternatives for these processes which we believe would both improve customer experience and reduce costs for the business,” it had said in a regulatory filing last year.
Along with other players, the digitalisation push during the pandemic has also lifted Amazon Pay as it saw scan-and-pay transactions growing 5 times since April 2020, while the number of such customers rising more than 2.5 times.
Amazon Pay said it has partnered with several banking, non-banking financial companies), and merchant partners to deliver these services.
It has partnered Acko General Insurance to offer insurance for two-wheelers and four-wheelers. It had launched Covid health insurance to all its sellers in the country. It has launched Amazon Pay Later, a service that extends a virtual line of credit to eligible customers, for which it has partnered Capital Float and Karur Vysya Bank. It also offers co-branded credit card in partnership with ICICI Bank.
It has invested in fintech firms Capital Float, ToneTag and BankBazaar to leverage its offering.
Amazon Pay saw its losses widen to Rs 1,868.5 crore in the financial year 2020 from Rs 1,160.8 crore in the fiscal ended March 2019.
Amazon Pay’s total revenue for fiscal 2020 grew over 64 per cent to Rs 1,370 crore over Rs 834.5 crore in fiscal 2019.
The company, which competes with players like Paytm, Flipkart’s PhonePe, and Google Pay, saw its parent pumping in over Rs 2,700 crore investment in the financial year 2020.
Amazon Pay India had received Rs 2,705 crore in FY20 from Amazon Corporate Holdings Private Limited and Amazon.com.incs Limited. Amazon Pay India allotted shares to these entities worth Rs 450 crore in June, Rs 900 crore in October, and Rs 1,355 crore in December 2019, the document said. It added that shares worth over Rs 700 crore were allotted to these firms in September 2020.
Earlier this month Amazon has infused over Rs 225 crore into its payments unit in India. The fresh infusion is expected to help the company compete more aggressively against rivals like PhonePe, Google Pay and Paytm.