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Emvantage Payments to be acquired by Amazon

Online marketplace Amazon Tuesday announced that it
will buy online payments firm Emvantage Payments Pvt. Ltd to develop
India-specific payments solutions. Amazon had infused an
additional Rs.1,696 crore into its India unit (Amazon Seller Services Pvt.
Ltd) in December 2015, to take on local rivals Flipkart and Snapdeal.

 

Online marketplace Amazon Tuesday announced that it
will buy online payments firm Emvantage Payments Pvt. Ltd to develop
India-specific payments solutions. Amazon had infused an
additional Rs.1,696 crore into its India unit (Amazon Seller Services Pvt.
Ltd) in December 2015, to take on local rivals Flipkart and Snapdeal.

 

“Emvantage is a valuable addition to our team as we
accelerate our payment offerings, ensuring the best in class online payment
experience anywhere that customers shop with us,” Srinivas Rao, director,
Amazon Payments India, said in a statement.

 

It makes sense for these big boys of E-Commerce to
have digital payment solution as part of their overall scheme of things. It
reduces dependence on cash and you do not require a third party for payments.
And large e-commerce companies have made significant investments, acquisitions
and partnerships with payment companies to claim a share of the fast-growing
digital payments vertical which helps reduce the dependency on cash and make it
convenient for online shopping. Snapdeal launched its mobile wallet through its
utility payments unit FreeCharge in September 2015 and Flipkart Ltd had
acquired payments services company FX Mart Pvt. Ltd in August 2015. 

 

The Indian e-commerce market is poised to be a $100
billion by 2020, as per 2015 Goldman Sachs report.

 

Emvantage employees will join Amazon’s payments team.
The acquisition is expected to close in the first quarter of 2016, the company
said.

 

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