Amazon Pay Partners with Government Agencies in India

On the heels of acquiring an e-wallet license from the Reserve Bank of India in March, Amazon is targeting Indian government institutions as partners for Amazon Pay, as its third-party online payment service is known in the country. In India, domestic mobile payment provider Paytm and Chinese service Alibaba provide the main competition for online and mobile payment. Published reports in India indicate Amazon is partnering with state-run electricity boards and insurance companies to spread its payments services there beyond the Amazon marketplace. Flipkart, the leading online marketplace in India, also has launched a digital wallet service Amazon hopes to compete with.

Seattle-based Amazon established a toehold for Amazon Pay as a third-party payment option on several sites including online food delivery services Faasos and Box8. It’s unclear how many of Amazon’s more than 300 million active users are based in India, but the country has enormous e-commerce potential that global tech players are racing to leverage.

Partnering with government agencies that accept online payments could be an end run around the problems Amazon Payments encountered in the U.S., where online merchants were leery of inviting one of their biggest competitors inside their walls and adoption of the service remains low despite its potential to convert more customers with Amazon’s one-touch payment.