Amazon India gets a wallets license authorized by RBI

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In a recent report, word is that Amazon India gets a wallets license authorized by RBI and might begins operations soon. The news comes of MediaNama, and is reportedly confirming that Amazon India now is one of the 84 companies to have got this license to operate payments in India.

With this, Amazon can handle customers’ money in a closed environment, within Amazon and their partners, for purchasing goods. The license is reportedly issued to Amazon on March 22 of 2017 and is valid until March 31 of 2022.

This enables users to add money to their Amazon account and use the money for future transactions on Amazon without the need for additional 2-factor authentication, which otherwise is a mandatory protocol. RBI mandates that users will have to approve their card payments for online and local transactions with a secure code on the payment gateway webpage, post which the transaction will be deemed successful. This is not the case in international transactions though. This applies only to Indian purchases. International transactions, even with Indian cards, do not require 2-factor authentication.

We are pleased to receive our PPI license from the RBI. Our focus is providing customers a convenient and trusted cashless payments experience. – VP Payments, Amazon India.

The wallet license for Amazon India might possibly get linked to the existing Amazon Pay architecture, which is more the same. Amazon Pay balance enables users to add money to their Amazon account and use it for purchases on Amazon. The wallets license takes this further and enables users to pay at any partner site with Amazon wallet balance.

Amazon had applied for a wallet license by the name of Amazon Online Distribution Services Private Limited and open up services similar to Freecharge by Snapdeal and Paytm. Users can apply for KYC verification and expand their wallet limit to 100000, as and when that is possible. In the interim, users can load upto Rs 20000 on their Amazon wallet account.

The service is yet to open for users. Via.