Reuters: Amazon.com Inc (AMZN.O) said it has acquired Indian payments processor Emvantage Payments Pvt Ltd for an undisclosed sum.
Emvantage’s employees will join Amazon’s India unit that will use the company’s technology on its e-commerce website, Amazon said in a statement.
Amazon has been rapidly expanding into India’s fast growing e-commerce segment that is likely to grow to $220 billion by value of goods sold by 2025.
With roughly a fifth of the world’s population but only 12% of its internet users, India remains a curious case for e-commerce companies looking to tap into the rapidly-developing market.
For one, more than 50% of Amazon’s Indian customers still use cash for online purchases. That’s created a complicated logistics situation in which a constellation of local shops serve as both payment center and pick-up spot for online goods.
Emvantage would give Amazon the technological foundation to make online shopping more convenient with services that include a mobile prepaid wallet, which could cut the dependency on using cash when making online purchases.
The purchase of Emvantage also makes sense when looking at data on internet and mobile phone use in the world’s second most populous country. According to the World Bank and the Internet and Mobile Association of India, the number of Indians with mobile phones outnumber those with personal computers.