‘India’s Amazon’ Launches Payments Unit
Dec. 19, 2013
Flipkart, the e-commerce company often referred to as “India’s Amazon,” may also become “India’s PayPal.” Bangalore-based Flipkart has followed in PayPal’s footsteps (and Amazon’s as well) by establishing a payments arm that will enable its customers to use payment information stored with Flipkart at other online stores. PayZippy, which the company launched for merchants in July, was rolled out to consumers this week.
Flipkart appears to be betting on higher credit-card penetration from a consumer base that currently uses cash-on-delivery 65 percent of the time. Will the convenience of one-touch online payments cause consumers in India to change their ways? It remains to be seen, but, according to Mekin Maheswari, head of payments and digital media at Flipkart, PayZippy reduces the time to make an online payment by 50 percent.
Flipkart launched the consumer version of PayZippy with 10 merchants, including India’s largest flight-booking site, MakeMyTrip. Maheswari said the company expects 150,000 consumers to sign up for the service during its first month and to reach 1 million by June.