Amazon launched its own payment system in India recently. The company is now a full-fledged competitor in a payments app battlefield. It recently announced bank-to-bank transfers as well as person-to-person payments as well. The company also enables consumers to recharge their mobile phones, pay electricity bills, and of course shop online.
Using AmazonPay, customers get a 120 rupees cashback, a perk induced to outshine GooglePay and Paytm. These two competitors are well-known for their cashback schemes in the Indian market. Due to their bonanza schemes, these have become familiar names to every Indian household in no-time. Additionally, Amazon may also struggle in the payment app market.
Currently, over 90% of retail in India is a playing field of small stores, owned traditionally by families. Only 3% of these are tech-enabled, which makes development more challenging for Amazon. The e-commerce giant wishes to dig-deeper into the grocery business with better financial logistics, more insights into customers, and inventory management.
Recently, Amazon launched a B2B inventory management and supply program countrywide for a ‘kirana’ stores, commonly known as mom-and pop stores in US.
Indian P2P Business: A Booming Opportunity
India is witnessing a growing influx of large investments in the P2P market. Recently, Alibaba entered the Indian P2P market with a large stake in Paytm. Furthermore, Google is investing millions into making the platform irresistible for consumers. Google continues to offer a simple design, and a non-nonsense business alike look.
On the other hand, Paytm offers a ton of consumer products for sale, possibly working in close-collaboration with Alibaba. The app has its own version of a virtual mall and competes with Amazon.
Amazon’s huge cash flow promises to hand-in extraordinary advantage to the company on the P2P battlefield. However, cash rich pockets of Google and home-advantage of Paytm promises a bright future for competition and consumers.