First,Amazon captured the Indian online retail market to an extravagant extent. Then it decided to take its rival’s share of order deliveries and now it plans to take over their payment methods too. Amazon Pay (the etailer’s digital wallet) launched last year.
The wallet now comes with a payment option that enables it to compete directly with Flipkart Phone and Paytm.
What’s the new wallet service from Amazon?
Unlike the previous gift card feature offered through Amazon Pay, via Qwikcilver, customers can now add money to Amazon Pay and it automatically goes into their wallet accounts instead of converting into gift cards.
According to a spokesperson from Amazon, “We are focused on addressing customer needs and to innovate to ensure that customers have a trusted and convenient payment experience. We are leveraging our PPI (prepaid payment instrument) license received from RBI while we continue to partner with Qwikcilver to offer digital gifting and payments solutions.”
Why is this better for customers?
Using payment options like internet banking, credit and debit cards are cumbersome since they involve banks and third-party payment gateways that result in 30% payment failures and multiple retries that affect the whole online shopping experience.
With this new feature from Amazon Pay customers won’t have to go to their bank websites to fulfill their purchase transactions. The 2-factor authentication for their online payment completion is bypassed with the Amazon wallet.
The new option also allows shoppers using the Amazon Pay wallet when purchasing from other retailers. Amazon planned on using Pay as an alternative source of revenue, this could be just the feature customers and partners are looking for.