04 October 2017, India:
Two of the largest online marketplaces in India, Flipkart and Amazon have battled it out to capture the e-commerce market, now both the platforms are set to compete in the digital payments business. Apart from these two, there is Paytm at the helm and entities like Google Tez, BHIM app as well.
Flipkart’s PhonePe has raised $38.7 Million (Rs. 254.43 crore) from its Singapore-based group entity, Flipkart Payments Pvt. Ltd as per the report by VCCircle. PhonePe is a UPI based app to provide cashless transactions. The app allows you to transact using the PhonePe wallet, Credit/Debit card, or UPI. You can pay bills and do recharges on PhonePe, just like Paytm.
Meanwhile, According to filings with the ministry of corporate affairs, Amazon India is preparing to increase its investment in its own payments arm by at least five times. Amazon has increased its authorized capital for Amazon Pay India Pvt. Ltd to Rs. 2,000 crore (roughly $305 million) from Rs. 400 crore, according to the regulatory filings.
“The company is in need of funds for the expansion of business operations. Therefore, it is necessary to increase the authorized equity share capital to accommodate future funds requirements,” Amazon said in the filings.
“Keeping in view the future funding needs of the company, it would be prudent to increase the authorized equity share capital adequately to be in line with the capital requirements of the company,” Amazon added.
After the launch of Google Tez, the Indian Mobile Payments market is witnessing an aggressive competition. Speaking about BHIM, it stands for Bharat Interface for Money. This app allows you to transact only via UPI. There is not much to discover in the app, but it allows you to transact offline as well, so you don’t have to worry about having an internet connection.
Will PhonePe vs Amazon Pay be at the same level as the e-commerce battle? (Image- Business World)