Online marketplace Amazon India has secured a licence to operate pre-paid payment instrument (PPI) or mobile wallet in the country as it tries to compete more aggressively against rivals Snapdeal and Paytm.
The approval will help the US-based giant to cash in on the booming digital payments market in India.
In December, Amazon had launched its Pay Balance service to cash in on the digital payments boom. Similar to other mobile wallet services, the payment mechanism, however, was restricted to transactions made on Amazon's platform.
Amazon Pay runs on the PPI licence issued to gift card provider Qwikcilver, in which Amazon had invested in 2014. Here are other prepaid wallet services that Amazon will compete against:
1.PhonePe: Flipkart-owned PhonePe uses the Unified Payment Interface (UPI), the peer to peer payment technology platform that allows users with a mobile phone transact digitally. As it is a UPI app, there is no need to add details of the beneficiary account and allows you to transact maximum up to 1 lakh rupees.
2. Paytm: The company’s QR code-based payment solution is being used at a little more than five million establishments. With no cost of the point-of-service terminal and zero transaction charges, coupled with the vast Paytm user base, the company is acquiring almost a million merchants a month.
3. Mobikwik: One of the larger entities in the digital wallet space that allows you to pay or transfer money using the mobile number. It allows you to make mobile recharge and pay bills in seconds
4.FreeCharge: Snapdeal’s online payments platform clocks one million transactions on a daily basis approximately. Apart from making mobile phone recharges, one can pay at petrol pumps as well.
5. State Bank Buddy: State Bank of India’s e-wallet is the first Indian mobile wallet available in 13 Indian languages. The app has a setting that reminds users to clear dues, make bill payments, among other facilities.
6.PayZapp: HDFC Nabk’s application is available to customers of all banks and allows you to make payments with just a single click.
7.Pockets: This ICICI’s app is the first mobile wallet app in India that enabled UPI-based payments. It allows you to transfer money, book tickets, do mobile recharge and more.
8. LIME: Launched by Axis Bank, this app is also available for an account and non-account holders but only available on Android. One can avail payment, banking and shopping facilities.
9. Ola Money: The app owned by cab aggregator Ola allows you to add money in the wallet or directly use your credit/debit card or net banking. Available on both Android and iOS, the app keeps a track of your transaction history.
10. Airtel Money: Launched by Airtel Payments Bank, every transaction is safeguarded under secret 4-digit mPin like most digital wallets. Apart from recharging prepaid and postpaid mobile phones, it allows you to even shop online.
While wallets might be struggling, the case for digital payments in India remains strong. Since the Modi government’s move to demonetise large-value currency bills, the volume of IMPS transactions shot up from 36.2 million in November to 62.4 mn in January, reported Business Standard earlier.