This story was first published on the Benzinga India portal.
In a strategic move to fortify its presence in India’s thriving digital payments market, Amazon (NASDAQ:AMZN) has reportedly pumped ₹600 crore (approx $72 million) into its payments business in the country.
What Happened: The American e-commerce behemoth has bolstered its Indian payments business with a hefty investment of ₹600 crore, ET reported.
Amazon has increased its investment in the Indian payments platform to ₹950 crore ($113.8 million) so far this year, the report added. In February, Amazon invested ₹350 crore ($41.9 million) into the platform.
The retail giant has also invested nearly ₹2,500 crore ($299 million) in Amazon Seller Services, which operates its e-commerce marketplace in India.
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According to data from the National Payments Corporation of India (NPCI), Amazon Pay is the fifth largest UPI player in India by transaction volume in May, much behind Walmart-backed PhonePe, Google Pay, Paytm, and Cred, holding less than a 1% market share.
Why It Matters: India’s digital payments market is witnessing a rapid surge, driven by the government’s push for a digital economy and the increasing penetration of smartphones and internet connectivity. Amazon’s investment in its payments business is a strategic move to tap into this growing market and strengthen its foothold.
The investment also underscores Amazon’s continued commitment to its Indian operations. The e-commerce giant has been consistently investing in various sectors in India, including e-commerce, logistics, and now digital payments, recognizing the immense potential of the Indian market.
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