Amazon Pay, the payments arm of e-commerce giant Amazon is proving to be a hot product. Deployed as a merchant to process online payments, Amazon Pay is looking to tap digital payments mode via UPI and planning to enter the insurance market as well as lending to offer small credit to buyers.
While insurance vertical will take some more time to come, the company has softly launched EMI through Amazon Pay to offer credit line up to Rs 60,000 to customers.
Amazon has tied up with Capital Float as its lending partner that will initiate and process the Amazon Pay EMI credits. Besides, the company has highlighted HDFC Bank, ICICI Bank, Canara Bank, Citi Bank, and Kotak Mahindra Bank as eligible banks
To register, users need to verify their identity using PAN and Aadhaar card details. Verification needs to be completed by confirming an OTP sent on the Aadhaar-linked mobile number.
According to Vikas Bansal, director, emerging payments, at Amazon Pay, the company is targeting the next 70 million customers who don’t have credit cards, reports ET.
Amazon claims to be offering zero cost EMIs for customers taking the loan for a duration of three and six months. For loan duration falling in the range of nine to 12 months, the rate of interest will be 18 per cent.
Amazon’s arch-rival Flipkart was also spotted with two new payments option Flipkart Finance and Flipkart Finance EMI for select users. Like Amazon, Flipkart also aims to cater to small credit audience.
Apart from the microcredit option for buyers, both e-commerce marketplaces have been planning to launch consumer-facing fintech lending and seeking NBFC licence.
In June, Amazon had launched a dedicated lending product meant for its sellers. The firm has partnered with Aditya Birla Finance, Bank of Baroda, Capital First, Capital Float, Flexiloans and Yes Bank as its lending partners to offer collateral-free term loans or overdraft loans ranging from Rs 2 lakh to Rs 5 crore.