It seems Amazon is making all the right moves to stay relevant in India. Right from using Indian lingo in its advertising campaigns, opening Chai Cart for on-boarding sellers, to showering gifts for customer loyalty, the online marketplace is customizing its strategy to match the taste of Indian consumers and slowly moving ahead.
Acquiring Emvantage, a Noida-based payment gateway company is the ecommerce leader’s latest move. Post the acquisition, employees of the payment platform will work with Amazon and will start developing India-specific convenient and reliable payment solutions.
Srinivas Rao, Director – Amazon Payments India shared, “EMVANTAGE is a valuable addition to our team as we accelerate our payment offerings, ensuring the best in class online payment experience anywhere that customers shop with us.”
How will sellers benefit?
Popularity of cash-on-delivery payment option in India is affecting Indian ecommerce industry and online sellers a great deal. Online shopping cart abandonment is increasing too due to lack of/limited payment options.
Amazon is trying to tackle both the issues by acquiring Emvantage. How? One look at the features of the payment gateway company answers that. Few of the features are:
- Allows payment through credit, debit and prepaid cards of domestic and international brands
- Allows payment through net-banking
- Mobile payment – Interbank Mobile Payment Service (IMPS)
- Mobile payment gateway
- Mobile NFC payments
- Mobile prepaid wallet
- Mobile Swiper solution
While payment through cards is a standard feature, it’s the host of mobile payment services that will help Amazon to gain competitive advantage and expand its mobile platform. After all, m-commerce is the current hot spot of the Indian ecommerce industry.
Gearing up to compete with existing players
Snapdeal has Klickpay and FreeCharge, while Flipkart bought a majority stake in FXMart to launch mobile payment facility. Paytm is already a payment and mobile wallet company, so it was about time Amazon joined the list.
Lesson learnt from stint in China
Amazon struggled hard in China as it tried to apply the same global strategies that worked in the US instead of localizing its moves. Alibaba that has Alipay, online payment platform, didn’t make Amazon’s life any easier in China.
So the American ecommerce leader is careful about not repeating the mistakes it made earlier. The consumer-centric company sees that it customizes the business strategies to suit India’s needs. Acquiring Emvantage is one of them!