Amazon India has received the RBI’s approval for an e-wallet. The licence has been issued to Amazon Online Distribution Services on March 22, and is valid for five years.
Pay Balance is a closed wallet that runs on Amazon and offers an easy and convenient one-click payment system compared with the two-factor authentication system that is prevalent in India.
With Pay Balance, customers can fund their pre-paid balance using internet banking, credit/debit card using two-factor authentication, and thereafter, go cashless on Amazon.in.
The e-wallet approval comes as the e-tailer plans to woo customers big time to shop on Amazon.in. Internal focus is intensifying on doling out extra discounts to online shoppers who are Amazon Prime members and use Pay Balance.
With the e-wallet licence that will most likely be linked to Pay Balance, Amazon will now be able to compete with existing wallet holders such as Flipkart’s PhonePe, Paytm and FreeCharge.