Amazon India to now run digital wallets

Q.  Which e-tailer has received approval from RBI to operate a digital wallet in April 2017?
- Published on 13 Apr 17

a. Amazon India
b. Flipkart
c. Paytm
d. None of the above

ANSWER: Amazon India
 
Amazon India to now run digital walletsAmazon India has received approval from the Reserve Bank (RBI) to operate a prepaid instrument or digital wallet.

Amazon Online Distribution Services (AODS), a subsidiary of Amazon Asia Pacific Resources, was awarded the license on March 22.

The license is valid till the end of fiscal year 2022.

The development comes at a time when the digital payments space is witnessing a high level of engagement by leading internet-based startups in the country.

Amazon invested INR 150 crore in AODS last year with the objective of participating in this space. The Seattle-based e-commerce major had applied for a wallet license.

Amazon's top rival, Flipkart, also has ambitious plans for its payments business under the PhonePe brand.

The RBI approval for Amazon sets the stage for a fierce competition between the company and Flipkart in the payments business too.

At present, Alibaba-backed Paytm is the largest wallet player in India. Other smaller players include Mobikwik and Freecharge.

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