Amazon is reportedly considering a significant shift in its payment strategy in India by transforming Amazon Pay into a standalone app, according to three sources familiar with the matter. This move, which could roll out in the coming months, signals the e-commerce giant’s intent to elevate the prominence and usage of its payment services in one of the world’s most dynamic digital markets.
Currently, Amazon Pay is integrated within Amazon’s primary e-commerce app in India. The platform offers a wide range of financial services, including peer-to-peer money transfers, bill payments, insurance purchases, mutual fund investments, digital gold transactions, and travel bookings. Despite its broad functionality, some insiders believe that Amazon Pay isn’t getting the attention it deserves when bundled within the main shopping app.
The idea of decoupling Amazon Pay from the e-commerce app has been under consideration for about a year, say two of the sources. This plan, while still in the exploratory stages, has already prompted Amazon to engage with the National Payments Corporation of India (NPCI) to seek necessary approvals, according to another person in the know.
The rationale behind this potential shift is to create a dedicated platform that can better cater to the specific needs of its payment users. By launching Amazon Pay as a standalone app, Amazon aims to provide a more focused and enhanced user experience, potentially driving higher engagement and recognition for the service across the country. The standalone app could allow Amazon Pay to break free from the shadow of its parent platform, positioning it as a key player in India’s competitive digital payments landscape.
However, the discussions are still ongoing and confidential, with the possibility that Amazon could revise or even abandon the plan. The company is also navigating a host of other challenges in India, which might influence the final decision.
An Amazon spokesperson declined to comment on the matter, dismissing it as speculation. Nonetheless, the potential move highlights Amazon’s strategic efforts to capture a larger slice of the Indian digital payments market, where it currently ranks sixth among apps on the Unified Payments Interface (UPI) network. In July, Amazon Pay processed approximately 72.4 million transactions, representing about 0.5% of all UPI transactions. This is a relatively modest share compared to competitors like Walmart’s PhonePe and Google Pay, which processed 6.9 billion and 5.3 billion transactions, respectively.
Amazon’s contemplation of this move comes amid a broader trend where major players in India’s digital ecosystem are reevaluating their strategies. For instance, Flipkart, Amazon’s chief rival in India, recently consolidated its fintech offerings into a single vertical, just two years after spinning off PhonePe into a separate entity.
As the landscape of digital payments in India continues to evolve, Amazon’s next steps will be closely watched, as they could signal a new phase of competition in a market where the stakes are high and the players are formidable.
