There's no doubt that India is a gold mine for Amazon (NASDAQ:AMZN). The company is tapping into the many opportunities in this region, ranging from e-commerce to smart speakers and even insurance, but it will keep pushing the envelope, as its latest move indicates.
Recent filings with Indian regulatory authorities revealed that the e-commerce giant has made a fresh infusion of $80 million into its digital payments business, Amazon Pay. This brings the company's total investment in Amazon Pay to more than $170 million over the past year.
Mobile wallet adoption in India is growing at an exponential rate. The value of mobile wallet transactions in the country has jumped 40 times in just five years, thanks to growing internet and smartphone penetration. Not surprisingly, a large number of online shoppers in the country now prefer paying through digital wallets versus cash or cards.
Digital media company GlobalData has found that the share of cash or check payments in India's e-commerce sector has dropped from 31% in 2013 to just 16% last year. Over the same period, the use of plastic cards has declined from 38% to 32%. Mobile wallets have been the biggest gainers, as their share of e-commerce payments has increased from just 7% to 29% over the same period, and they are expected to grab a bigger slice going forward. See more...