Paytm and Amazon in payments projects in India
Paytm, e-payment/e-commerce brand and payments bank, is bringing the QR code scanning habit to the Indian masses, while Amazon Pay has launched a digital wallet.
Paytm, which has been at the forefront of QR-based payments in India, now offers a feature for users to scan any non-Paytm QR code generated using open standards.
Launched in 2010 (Paytm Bank was launched later, in spring 2017), Paytm has over five million merchants – from small roadside vendors to large retail outlets – using its platform for payments transactions.
“Our latest feature will enable consumers to scan generic QR codes using the Paytm app and facilitate enhanced on-the-go discovery for all QR linked products and services,” says Deepak Abbot, Paytm’s senior vice-president.
The paytech firm hopes the project will also aid its quest to instill a QR code scanning habit in India.
“We believe QR codes are the most convenient method to discover and buy a product,” Abbot states.
“Going forward, we will continue to drive aggressive product innovation,” he adds.
Meanwhile, Amazon Pay has launched a digital wallet in India to rival the established players such as Flipkart with its PhonePe solution and the aforementioned Paytm.
Amazon’s Pay digital wallet can now store the money instead of the money going to gift cards, as was the case before. Amazon offers the gift card service together with Qwickilver and this partnership will continue, Amazon says.
However, the e-wallet has advantages over gift cards as it does not have an expiration date. Also, it now enables customers to shop outside Amazon at several other retailers.
Amazon holds a prepaid payment instrument (PPI) licence from Reserve Bank of India (RBI) and can make online shopping using its Amazon Pay wallet an easy process, compared to payments done by debit/credit cards (as consumers are usually routed to their bank’s website to complete a transaction).
Customers can use Amazon Pay like any other digital wallet, bypassing the two-factor authentication.
Amazon recently made an investment of IND 130 billion ($202.6 million) into its payments business in India.
In its Independence Day sale, it has offered additional cashback deals on its new digital wallet.
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