Amazon increases payment business quota by Rs 150 crore

India Infoline News Service | Mumbai | January 12, 2017 08:59 IST

Amazon Online Distribution Services (AODS), which is an arm of the authorised share capital of Amazon's payment business, has been increased to Rs 400 crore from Rs 69 crore, and indicates Amazon's desire to build a bigger payments business in India.

Amazon Online Distribution Services (AODS), which is an arm of the authorised share capital of Amazon's payment business, has been increased to Rs 400 crore from Rs 69 crore, and indicates Amazon's desire to build a bigger payments business in India.

An amount of Rs 150 crore has been received as capital by the company. The infusion was done last year in September. Higher number of stocks can be issued by increasing the authorised share capital after shareholder approval. 

Payment gateway firm, Emvantage was acquired by Amazon in February last year, which is its first acquisition in India. Its rival, Flipkart launched a wallet named PhonePe early last year. Amazon too had applied for a semi-closed wallet license with the RBI last year, named AODS.

Merchants can sell through the Amazon's website using “Pay With Amazon”, which it had started in September 2015.

The expected payment market in India is expected to grow to $ 500 billion by 2020, according to a study done by Google and consulting firm, BCG. The core commerce business of Amazon India is run by Amazon Seller Services, which has been aggressively investing in India. The company received over Rs 7000 crore last year.

All big e-commerce companies have ventured into the payments business. In April 2015, Snapdeal acquired Freecharge.
 

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