US-based global etailer Amazon infuses additional ₹220 crore in its digital payments arm Amazon Pay. Amazon continues to pump money in its digital payments arm, as it competes with digital payments giants like Paytm and PhonePe, in India.
During the recently concluded festive season sale, digital transactions accounted for 75% of all the Amazon India sales. The etailer offered huge cashbacks and other offers on transactions through Amazon Pay, driving sales through its digital payments arm.
The fresh infusion comes merely a month after Amazon Pay raised ₹590 crore from its parent, ahead of festive season sale. The capital was aimed at boosting sales through heavy discounts and offers.
In July 2018, Amazon had invested ₹230 crore in Amazon Pay, to take on local rivals, amidst growing competition.
Over the last two years, Amazon Pay has received around ₹1,820 crore, which has helped it grow its services in India.
Last month, it was also reported that Amazon Pay posted ₹389 crore in revenue during FY18, rising nearly 100 times from merely ₹4.1 crore in FY17.
While the revenues rose significantly, the losses saw a considerable increase from ₹178 crore in FY17, to ₹334 crore in FY18.
According to a recent Credit Suisse report, Indian digital payments segment is pegged at $200 billion, which is expected to grow five-fold to touch $1 trillion by 2023. The growth is expected to be driven by the entry of mobile payments, which are gaining in popularity with the rising adoption of UPI.
The growth of digital payments can be seen by the rising UPI transactions in the country. Earlier this month, according to NPCI data, the UPI transactions for October stood at 482 million, rising by 19% from 408 million in September.