Amazon India, a subsidiary of e-commerce giant Amazon.com, has secured licence from the Reserve Bank of India (RBI) to introduce its own digital wallet.
The company has applied for prepaid payment instrument (PPI) licence a year ago to take on established rivals such as Paytm, Freecharge, MobiKwik and other wallets.
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In December 2016, the company also launched its own mobile wallet option Amazon Pay, which can be used only at its marketplace. The new digital wallet licence is expected to be linked to Amazon Pay.
Amazon India vice-president of Payments Sriram Jagannathan said: “We are pleased to receive our PPI licence from the RBI. Our focus is providing customers a convenient and trusted cashless payments experience. RBI is on 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.
“The development comes after the central bank issued directions on issuance and operation of PPI stating, issuers “shall ensure that there is no co-mingling of funds originating from any other activity that the Issuer may be undertaking such as business correspondent of bank/s, intermediary for payment aggregation, payment gateway etc.”
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By GlobalData
