Amazon has acquired Indian payment service company 'Emvantage Payments' for an undisclosed amount.
Amazon has purchased the Indian payment service provider ‘Emvantage Payments’. It is not a secret that the American e-commerce company has betted on India amongst its next huge markets located outside the United States.
The company is not only investing capital in India but also purchasing emerging companies to extend its foothold in the state. On Tuesday, the Seattle based company announced the acquisition of the Indian organization. Like PayPal or Stripe, Emvantage allows online sellers to accept debit and credit cards. It also allows establishing their branded prepaid mobile payments and debit cards.
The online retailer said the acquired organization would help it to develop the payment facility for online business in the country faster. Workers of Emvantage will become members of Payment team of Amazon to specifically establish payments products to cater the market of India.
In recent times, the online trading giant spoke to Vivian Walt of Fortune that after the United States, India would turn into its largest market within a decade. An official of Amazon, Diego Piacentini, stated Amazon’s sales opportunity is worth trillions of dollars. Recently Morgan Stanley forecasted that e-commerce sector is capable of increasing its revenue from $11 billion in 2013 to $137 billion in 2020.
The main factor that will help this growth will be to enable people to pay for goods through mobile phones and internet simply by taping a button or swiping. India vastly differs from US in terms of online payments and credit cards. Just 60% Indians have bank accounts and a tiny portion of those people is owners of credit cards.
The acquisition will improve the ambitions of Amazon to develop a payments technology that helps the population of India and provide it an opportunity to grow in the country. Emvantage has pioneered a range of payments solutions that include pre-paid cards, mobile payment, and payment gateway.
Amazon has not revealed the price at which it has purchased the Asian organization. Tech crunch reported that in 2020, the worth of Indian e-commerce market would reach $100 billion. In the region, a large number of online buyers use online wallets to pay for goods purchased online.
Cash paid on delivery, pre-paid cards and conventional stores are the options that are much more availed by consumers than online wallets. Alibaba-backed online payment service provider ‘Paytm’ has offered its own mobile wallet as an alternate to debit and credit cards, but it battles with many payment services owned by the major online trading players of India.
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