US-based multinational technology company Amazon has been considering transferring its payment offerings in India into a standalone app to increase regional usage. Currently included in Amazon’s primary ecommerce app in India, Amazon Pay allows users to transfer money to individuals and merchants, as well as to pay bills, purchase insurance and travel tickets, and invest in mutual funds and digital gold.

As detailed by TechCrunch , the company is considering unmerging its payment service from the ecommerce app, aiming to proceed with this plan in the upcoming period. Also, it is mentioned that Amazon contacted the National Payments Corporation of India (NPCI) to obtain the necessary approvals. The decision to transfer the payment service into a standalone app can be attributed to Amazon Pay not receiving sufficient interest on the ecommerce app.

Sources believe that, by providing a separate app with a singular focus, the payment platform could gain increased recognition in the country and, in turn, benefit from a wider user base. However, the sources quoted by TechCrunch mentioned that discussions regarding this matter are still ongoing, underlining that Amazon can change its plans and abandon the idea. The final decision could be influenced by Amazon’s current difficulties in the Indian market , including deficient merchant adoption and rigorous regulatory restrictions instituted by authorities.

At the time of the announcement, an Amazon official declined the request for comment on the matter, referring to the news as speculation. Previous news from Amazon Pay in India Shortly before the current news, specifically at the end of July 2024, the Reserve Bank of India announced its final decision to grant fintech companies Amazon Pay, BillDesk, and Adyen a cross-border payment licence. While BillDesk received its cross-border licence for both exports and imports on 29 July 2024, Amazon Pay India and Adyen obtained the licence on 25 July 2024, for imports only.

By attaining this licence, the financial institutions were set to continue to focus on meeting the needs, demands, and preferences of clients and customers in the Indian market whilst maintaining compliance with regulatory requirements and laws of the industry. .