within less than a month we came to see multiple game changing steps in Indian e-commerce industry. A cold war was previously running between Flipkart and Amazon. Now it looks like the war is not cold anymore. Its getting hotter day by day. The war got more prominent when the leading e-commerce giant announced “RBI issued e-wallet license to Amazon”.
Previously we saw there was a rumor of Softbank pushing Snapdeal to merge with Flipkart. The earlier this week Flipkart acquired eBay India. Now the latest one is Amazon is well prepared to launch a e-wallet service like PhonePe(Flipkart) or PayTM or Freecharge after they got a license for e-wallet services from India’s bank regulating authority Reserve Bank of India.
It is no more secret that after demonetization, digital wallet (e-wallet) companies witnessed a hooping rise of users. Indians found e-wallet more reliable and hassle-free, as a result companies like PayTM, Flipkart (PhonePe), Freecharge got a massive increase in their user base.
As per reports, nearly a year ago Amazon India applied for PPI (Prepaid Payment Instrument) license. Now as RBI approved the same, it is so obvious that Amazon will be a great threat to the currently established companies like PayTM & Freecharge. It is no wonder that Amazon services will not only be limited to Amazon transactions only. They will definitely provide something broader and innovative to take up the current competitors.
“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 in the process of finalizing the guidelines for PPIs. We look forward to seeing a continuation of the low-limit wallet dispensation with simplified KYC (know-your-customer norms) and authentication. This will allow us to help customers adopt digital payments at scale and thereby contribute towards making India a less-cash economy,” Sriram Jagannathan, vice-president of payments at Amazon India said in report.
How the current competitors will face the heat & competition from Amazon? Lets sit back and relax until Amazon throws their bomb. Do you have anything to say on RBI Issued E-Wallet License To Amazon? Why don’t you comment below?