The Indian ecommerce industry currently resembles an aggressive ongoing war with multiple battlegrounds. There are many mini-wars being fought to win the ultimate war. One battleground is private labels, another one is large appliances and the third one is digital payments.
Let’s take a close look at the third battleground.
After infusing Rs. 67 crore into its payments arm Amazon Pay, the ecommerce giant has started work on expanding its business. Amazon’s e-wallet recently initiated payments on online services Housejoy, Faasos and Box8. The etailer’s aim is to make Amazon Pay an alternate source of revenue by tying-up with third-party companies.
By limiting its service to parent company would restrict Amazon Pay’s growth. Therefore, it is flying solo and penetrating into the e-payments industry.
Without disclosing any specific company names that it is partnering with, Amazon’s spokesperson said,
“We are always testing ways to improve experience for our customers and these experiments are part of that.”
Paytm, Freecharge, and Mobikwik are the top three digital wallet players in India. Besides Amazon, its rival Flipkart has its own wallet PhonePe. While Paytm transitioned from being an e-wallet company to an online marketplace, thanks to Alibaba. Snapdeal acquired Freecharge, which is on-sale at the moment. The potential buyer could be either Mobikwik or Paytm.
The popularity of e-wallets touched a new high in the post-demonetised India. Online marketplaces that were looking to break away from cash-on-delivery rejoiced when online buyers started embracing digital payment methods.
According to the industry watchers, having their own payments arm gives an extra edge to ecommerce companies. This is why the top players are investing heavily into this department.
A digital wallet and payment entity enable etailers to:
The above reasons along with few others are driving the growth of this ecommerce vertical. But how much would this help Amazon, Paytm and Flipkart to win the Indian ecommerce race is yet to be discovered.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
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