The online retail giant had applied for what is called a Prepaid Payment Instrument (PPI) licence nearly a year ago and its services will not be restricted to Amazon-based transactions, reported the LiveMint.
In December, Amazon had launched its Pay Balance service in order to boost cashless transactions. While Pay Balance works in a similar manner to other mobile wallet services, it was restricted to transactions on Amazon.
“We are pleased to receive our PPI licence from the RBI. Our focus is providing customers a convenient and trusted cashless payments experience. RBI is in the process of finalising the guidelines for PPIs. We look forward to seeing a continuation of the low-limit wallet dispensation with simplified KYC (know-your-customer norms) and authentication. This will allow us to help customers adopt digital payments at scale and thereby contribute towards making India a less-cash economy,” said Vice-President, Amazon India, Sriram Jagannathan.
Amazon’s new wallet service will address a vital problem in the world of payments — like other wallet services such as Paytm, it will help customers bypass the two-step authentication process for online payments using credit or debit cards and makes the process smoother for online shoppers, thus plugging a key gap in the payments process that reduces the risk of loss of business from online shoppers.