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Amazon Pay counts wallets to push payments business
June 15, 2023
Amazon Pay, the digital payments arm of the ecommerce major, is betting big on the traditional mobile wallet business to get back into the leadership game in consumer payments.
Amazon is still not part of the payments leaderboard in India even with the entire gamut of financial services across payments, credit and insurance. But now with interoperability in its wallets, the company is hoping to get transactions back on track.
Interoperability allows the Amazon Pay wallet to be used with any QR code in the country. The company is activating more mobile wallets every day, but has not been seeing transactions on those wallets.
Data from the Reserve Bank of India shows there were 62.8 million wallets created by Amazon Pay as of April 2023, but they had reported only 3.8 million transactions that month.
The number of wallets has gone up 14% from 55 million a year back, but the transactions reported on the wallets have more than halved from around 8 million in April 2022.
To put that in context, Paytm Payments Bank has more than 500 million wallets.
On Unified Payments Interface (UPI)-based transactions, Amazon Pay is lagging behind the competition. NPCI data shows that Amazon Pay reported 57 million transactions in May 2023. This number has been fairly stable over the last year or so.
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