RBI approves Amazon to launch it’s own digital wallet
Amazon, the US based online retailer giant is all set to launch it’s digital mobile payment services in India. Amazon India, the Indian arm of the US based company applied for the license to launch digital mobile payment wallet last year to RBI. The license which is called Pre-paid Payment instrument (PPI) license was cleared and given to Amazon to launch it’s digital mobile wallet.
Amazon will compete against the big names in the sector like Paytm ,Freecharge, Mobiquick and many other individual wallets issued by various banks.
Amazon’s digital mobile wallet service can be used for making online transactions anywhere and is not restricted only to Amazon transactions like Pay Balance Service which was launched by Amazon in December last year.
India is a growing market for digital services. India’s Prime Minister Shri Narendra Modi’s dream of making India- Digital India is inviting all entities and startups to look out various problems in different sectors and solve it digitally. After demonetization, online transactions are increasing and thus, the scope of these mobile wallet services are also increasing. BHIM- Bharat Interface for Money, UPI based mobile app to make online transactions was launched by our Prime Minister after demonetization.
Apart from Paytm and Freecharge, PhonePE the online mobile payment platform owned by Flipkart was also launched in September 2016. Flipkart is the biggest competitor to Amazon in India.
Apart from Amazon wallet, the company recently launched another service called AMAZON CASH to make it easier for unbanked customers to buy online. Untill now, all mobile wallets or any other kind of online payment/transaction platform required to link your bank to the platform, transfer the money from bank to platform and pay through the platform. AMAZON CASH solves the problem for unbanked customers who do not have any bank accounts. (Click here to read full article)
Amazon received the PPI license in late-March. The development comes weeks after the RBI issued guidelines on issuance and operation of PPI license, indicating stricter norms for online mobile wallet players as the apex bank is in the interest of customer protection first. The central bank also raised the minimum capital requirements by nearly five times than existing level and also directed to comply with full KYC norms, thus making it tough for the online digital wallet service providers.
Apart from these mobile wallet services , another interesting way to pay online which is witnessing huge popularity worldwide is Bitcoins. Bitcoin is the world’s first decentralized person-to-person digital crypto currency which involves no intermediary like banks/other entities. The person can simply transfer it’s Bitcoins from his mobile wallet to another person in any part of the world and is as fast as like an e-mail. With negligible transaction fees, Bitcoin seems to be replacing money transfer agencies like Western Union, etc. Growing popularity and worldwide acceptance has made this currency the most valuable currency in the world pricing around $1200. Click here to read more Bitcoins.