Amazon has planned to get aboard the digital wallet bandwagon as online payments have increasingly become pivotal in the race for dominance in Indias ecommerce market, giving Internet companies greater control over transactions.
According to reports, the the Central Bank committee will review the application in April 2016. Amazon will open up the wallet for third-party platforms as well. A semi-closed wallet allows customers to buy merchandise from merchants who have specific arrangement with the payments company, however a closed wallet can only be used for single merchant. An open wallet allows for both cash payments and withdrawal and requires no tie-ups.
Amazon acquired Emvantage in February 2016, a Noida-based payments services provider making this its first acquisition in India, and is currently looking at multiple acquisitions in the online payments space in order to strengthen its position.
Amazon has also hired Sriraman Jagannathan, an ex-Citibanker, who is likely to spearhead the launch of the digital wallet. Sriraman Jagannathan had played a key role in the launch of Bharti Airtels digital wallet, Airtel Money, in 2012.
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