Amazon gains wallet license to boost its business in India
Amazon has gained a wallet license in India, Medianama reports, as part of a move that will allow the U.S. e-commerce giant to offer a paying experience with less friction in the country.
Currently, Amazon customers must go through two-factor authentication processes for each purchase they make. That’s in accordance with national law. A wallet license could change things by allowing customers to deploy/top-up their wallet for future purchases, but it also gives Amazon an effective channel for cashback offers, faster refunds and other incentives.
Amazon, which has spent $5 billion to develop its India business, used a 2014 investment in QwikCilver to enable gifting and giftcards using the startup’s wallet license. Now, some are speculating that the gifting service — which was rebranded to Amazon Pay in December — is where Amazon’s own license will be deployed.
The license was awarded in March, but news of its existence comes today just days after rival Flipkart, India’s top homegrown e-commerce firm, refueled its tanks with a record $1.4 billion funding round from China’s Tencent, Microsoft and eBay.
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