Amazon is considering launching a standalone app for its payments service, Amazon Pay, in India. This move comes as the e-commerce giant looks to increase the usage of Amazon Pay in the country. Currently, Amazon Pay is integrated within the main Amazon app and offers a range of services such as money transfers, bill payments, insurance purchases, and more.
According to sources familiar with the matter, Amazon has been contemplating this move for about a year and plans to proceed with the launch in the coming months. The decision to create a separate app for Amazon Pay stems from the belief that the payments service is not receiving enough attention within the e-commerce app. By creating a dedicated app, Amazon hopes to give Amazon Pay greater visibility and recognition among users.
However, it’s important to note that these plans are still subject to change, and Amazon may abandon the idea altogether. The company is currently facing various challenges in India, and it remains to be seen how these factors will affect the final decision.
Amazon Pay currently ranks sixth among apps on the Unified Payments Interface (UPI), which is the most popular online payments network in India. In July alone, Amazon Pay processed around 72.4 million transactions, accounting for about 0.5% of all transactions on the UPI network. In comparison, Walmart’s PhonePe processed a staggering 6.9 billion transactions, while Google Pay handled 5.3 billion transactions.
It’s worth noting that Amazon is not the only player in the market considering a separate payments app. Flipkart, Amazon’s chief rival in India, recently consolidated its fintech offerings into one vertical, two years after separating from PhonePe. This move suggests that both companies are exploring different strategies to gain a stronger foothold in India’s competitive payments landscape.
In conclusion, Amazon’s potential launch of a standalone app for Amazon Pay in India demonstrates the company’s commitment to expanding its payments services in the country. By creating a dedicated app, Amazon aims to boost the visibility and usage of Amazon Pay among Indian users. However, the success of this venture remains uncertain, as Amazon faces various challenges in India’s competitive market. Only time will tell if this move will help Amazon gain a larger share of the online payments space in India.
