Amazon Pay, the digital payments arm of ecommerce major Amazon India, has received a payment aggregator (PA) licence from the Reserve Bank of India (RBI).
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It now joins the likes of Zomato, Google Pay, Zoho and others to become eligible to offer online merchant payment services to its clients.
Responding to queries from ET, an Amazon Pay spokesperson confirmed the development.
“We are excited and thankful to receive the final authorisation from the Reserve Bank of India (RBI) to function as a Payment Aggregator. We remain committed to simplify lives and fulfill the aspirations of merchants and customers,” an Amazon spokesperson said.
After the PPI (prepaid payment instrument) licence, this is the second regulatory nod that Amazon Pay has received in India. It operates a consumer-focused mobile wallet which can be used for all forms of digital and UPI payments.
As per RBI data, 6.6 crore wallets were issued by Amazon Pay as of January 2024. It was used for more than 40 lakh transactions in that month, data showed.
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A PA licence will allow Amazon to strengthen its merchant payments business, a major opportunity for the ecommerce giant given its large online shopping business in India.
“This allows us to further strengthen our distribution channels and deliver innovative solutions for our merchants and customers across India providing them with secure, convenient, and rewarding digital payment experiences,” the spokesperson added.
From December 2023, the central bank started giving out final PA licences. Major payment players like Razorpay, Cashfree, MSwipe, Juspay got the licence too.
“For Amazon this could be a very big business where they can now process ecommerce payments for sellers on their app, they can also offer the service to direct-to-consumer sellers looking to sell products online,” said a senior fintech executive on condition of anonymity.
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In FY23, Amazon Pay reported operational revenue of Rs 2,093 crore, almost flat compared to the previous year. However, its net loss dipped to Rs 1,499 crore from Rs 1,740 crore in the year prior.
