The Reserve Bank of India has given approval to Amazon India to enable and use a digital wallet system on its online shopping portal. The official license (Prepaid Payment Instrument) was given on 22 March however the official news comes today right after Flipkart got a funding of $1.4 billion to take over eBay India.
Amazon India customers currently could only pay through a two-factor authentication processes. With the addition of an e-wallet, customers will now be able to make payments faster as well as top-up their wallet for future purchases. With this, Amazon also gets a streamlined channel to offer cashback, quicker refunds and more.
Amazon India was seen promoting its Amazon Pay platform which offered quick check-in and check-out using a customers Amazon account. However, this was only restricted to transactions on Amazon. With the new license, it seems that the company will offer their new wallet service under the same branding.
"We are pleased to receive our PPI (prepaid payment instrument) license from the RBI. Our focus is providing customers a convenient and trusted cashless payments experience. RBI is in the process of finalising the guidelines for PPIs. We look forward to seeing a continuation of the low limit wallet dispensation with simplified KYC & authentication. This will allow us to help customers adopt digital payments at scale and thereby contribute towards making India a less cash economy," said Sriram Jagannathan, VP payments, Amazon India.