Ecommerce giant Amazon pumps in ₹195 crore to push its payment service, Amazon Pay. The move comes at a time when other payment providers are in crisis due to mandatory Know-Your-Customer (KYC) rules.
Amazon Pay has reportedly lost 30% of its customer base due to the new mandatory KYC rules.
Amazon has been expanding the services of Amazon Pay and has started on-boarding third party merchants such as BookMyShow, FreshMenu, redBus,Yatra, Housejoy, among others.
The central banker restricts customers who have not completed their KYC formalities from using prepaid payment instruments. Players like Paytm have already started diversifying their business to other domains to overcome the crisis.
Ewallet players have been undergoing severe crisis since RBI kicked in the new KYC rule. The payment companies are adopting different strategies to retain their customer base.
Recently Paytm has started offering gift vouchers for its non-KYC users. However, to avail complete services of the payment instruments, users must meet mandatory KYC requirements.