Amazon Online Distribution Services (AODS), a subsidiary of Amazon Asia Pacific Resources, was awarded the license on March 22. The license is valid till the end of fiscal year 2022.
The development comes at a time when the digital payments space is witnessing a high level of engagement by leading internet-based startups in the country. Amazon invested Rs 150 crore in AODS last year with the objective of participating in this space. TOI had reported in March last year that the Seattle-based e-commerce major had applied for a wallet license.
Amazon’s top rival, Flipkart, also has ambitious plans for its payments business under the PhonePe brand. Flipkart Group CEO Binny Bansal had told TOI in an interview on Tuesday that a significant part of the company’s latest $1.4 billion fund raise will be deployed towards PhonePe.
The RBI approval for Amazon sets the stage for a fierce competition between the company and Flipkart in the payments business too.
