With the National Payments Corporation of India's bank-to-bank account settlement system Unified Payments Interface (UPI) fast gaining traction, several companies like Paytm, Flipkart-owned PhonePe and foreign players like Google have been leveraging it to expand reach. After all, monthly transactions through UPI jumped to over 405 million in September, up from 151.8 million in January.
Not to be outdone, digital payments entity Amazon Pay has lined up multiple promotional offers for UPI users and RuPay cardholders, The Economic Times reports. To begin with, it is offering 10% additional cashback for customers using UPI or RuPay as a payment mode. With account holders of the Jan Dhan financial inclusion programme being issued RuPay debit cards, the NPCI-run scheme boasts the highest number of cards (over 24 crore) in the country.
"We are lining up investments worth a few crores of rupees every month to drive adoption of indigenous payment modes like UPI and RuPay. Through this, we are trying to drive adoption of digital payments in tier two and three locations," Vikas Bansal, director, emerging payments, at Amazon Pay, told the daily, adding that 80% of the customers paying through UPI are from such locations.
Amazon India also confirmed it is working with private sector lender Axis Bank to develop its own UPI payment option under Amazon Pay. "In comparison to net banking for customers shopping on the mobile, we have seen a 15% higher purchase success rate for our customers using UPI," Bansal added.
The ecommerce giant claims to be among the top three merchants for customers transacting on the government-backed Bharat Interface for Money (BHIM) UPI app. In terms of monthly unique users on UPI, Amazon Pay reportedly registered a 500% jump between February and September, while RuPay card payments registered 50% growth in the four months to September.
So it's not surprising that Amazon pumped in Rs 590 crore into its digital payments arm last month, just three months after an investment of Rs 230 crore, as per filings with the Registrar of Companies. Since 2016, the world's largest etailer has reportedly infused nearly Rs 1,600 crore into Amazon Pay.
Amazon Pay is also embarking on a partnership model with a number of public sector banks, including Punjab National Bank, Union Bank and Central Bank, to extend the promotional offers to customers. And if you are planning to splurge during Amazon's Great Indian Festival, which kicks off at noon today for Prime members, consider topping up your Amazon Pay balance to get a cashback of Rs 300.