In order to provide its clients with credit via the unified payments interface (UPI), Amazon Pay is collaborating with the National Payments Corporation of India (NPCI).
“Innovating together with NPCI is one of our stated goals. One significant initiative is Credit on UPI. Therefore, we are actively examining that to see how we can improve the value proposition and customer experience going forward, according to Vikas Bansal, whole-time director of Amazon Pay India.
Presently, more than 100 million users utilize Amazon Pay UPI for bill payment, shopping, online retailer payments, and money transfers to friends and family. Through its platform’s Amazon Pay Later option, Amazon provides quick credit. Here, buyers can use equivalent monthly installments to make purchases on the Amazon marketplace.
In collaboration with IDFC FIRST Bank, Karur Vysya Bank, and financial platform Axio, Amazon Finance India provides Buy Now Pay Later. Nine million people have signed up as customers with Amazon Pay Later. The platform has a 99.9% success record in processing payments.
Up until now, lesser adoption among smaller merchants and a lack of clarity on the interchange charge structure have hampered credit on UPI volumes. Bansal believes that the merchant discount rate ought to be adjusted so that it offers an incentive to all players because of Amazon’s vast merchant network.
“Banks will profit but the merchant ecosystem will suffer if the MDR is too high. Thus, he remarked, “I believe you need to design it so that it provides incentives for all players in the ecosystem.”
In more than 350 cities and towns, over 8.5 million offline retailers have signed up to use Amazon Pay. More than 10,000 online retailers accept Amazon Pay, offering a broad range of services like food delivery, movie tickets, bus tickets, travel reservations, and taxi services. These retailers include Uber, Zomato, Swiggy, Dominos, and BookMyShow.
Furthermore, RBL Bank and ICICI Bank have teamed with Amazon Pay to facilitate UPI payments, FASTag recharge, and the co-branded credit card Amazon Pay ICICI.
The Reserve Bank of India (RBI) granted Amazon Pay a payment aggregator license in February. It had previously gotten approval from the regulator to operate as a prepaid payment instrument.
“We have a very lengthy history of processing or providing services to both merchants and customers. This license is proof of our method and strategy. “We intend to leverage the license to enhance our value proposition,” stated Bansal.
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