Amazon’s digital wallet service, Amazon Pay, will allow users to make small transactions to pay for utility bills, insurance payments, education fees and local transit.
Last year, Amazon invested $10.5 million in its distribution reach in Asia, with a big focus on the Indian market. The e-commerce giant’s big move in digital payments in partnership with government agencies will expand Amazon Pay beyond the online market and convenience services, like food delivery.
Last year’s demonetization push in India has spurred growth among digital payment providers, including MobiKwik and Alibaba-backed Paytm, which is launching a digital bank. Hundreds of millions of India’s 1.2 billion citizens lack access to financial services.
Digital payments and banking in India is “about new customers [and] showing that there’s a business model based on transactions, not just wealth management,” says Paytm’s Vijay Shekhar Sharma.