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This article is more than 3 year old.

Amazon invests Rs 230 crore in Amazon Pay

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Like Flipkart-owned PhonePe, Amazon Pay is looking to push its wallet service beyond its marketplace.

Amazon invests Rs 230 crore in Amazon Pay
Even as the digital payments platform play heats up in India  and rival Filpkart's payments company PhonePe expects fresh infusion from Walmart, the new majority shareholders in the company, Amazon is upping its ante in the payments space.
In its fourth investment in two years, the parent company has pumped in Rs 230 crore into its Indian digital payments arm, according to documents sourced from startup data intelligence firm Paper VC .
Amazon infused fresh capital  to the tune of Rs 67 crore in Amazon Pay last May  followed by another Rs 130 crore in July 2017. The latest round comes just four months after the infusion of Rs 195 crore in March this year.
Currently, the Amazon Pay service is used only purchases done only on the marketplace and certain third party transactions.
Like Flipkart-owned PhonePe, Amazon Pay is looking to push its wallet service beyond its marketplace to other online merchants across sectors such as  automobile accessories, books, music, and entertainment among others.
However at a time where wallet players are facing extra compliance cost with  stringent KYC norms set by the Reserve Bank of India for on-boarding new  customers, gaining quick market share  even through discounting will not be easy for Amazon, a strategy that worked very well for Paytm early on.
RBI rules say digital wallet companies need to complete know your customer (KYC) verification of each customer with a transaction limit of Rs 1 lakh per month.
Accounts with transaction limit of less than Rs 10,000 per month, on the other hand, can be accessed with a one-time-password verification of a mobile number and a valid government-recognised identity document.
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