The National Payments Corporation of India (NPCI) and digital payment companies Google Pay, PhonePe, and Amazon Pay have requested an exemption from the provisions of the Digital Personal Data Protection (DPDP) Act that demand user consent for every transaction, claiming that doing so would be excessively burdensome, according to ET.
Fintech Firms Challenge DPDP Consent Clause
According to the companies’ submissions to the Ministry of Electronics and Information Technology (MeitY), the regulation will also apply to recurrent payments and result in increased complexity and cost. According to them, the problem will be more noticeable for startups and smaller businesses. Since the guidelines that were floated in January for stakeholder engagement have not yet been notified, the law has not yet been operationalised.
In this regard, MeitY met with company representatives last week. Amazon Pay, PhonePe, Google Pay, and NPCI all refused to answer questions. The Unified Payments Interface (UPI) and the payment and settlement system are operated by NPCI.
Recurring Payments at Risk Under New Data Law
The Act’s emphasis on obtaining express consent for each data processing activity is at the heart of the problem. Despite the clause’s seeming simplicity, industry participants contended that its current interpretation and use might seriously impair current digital payment processes. After initial consent, recurring payments, such as subscriptions or electricity bills, are usually automatically deducted.
The industry is concerned that this will demand new user consent under the DPDP Act’s consent requirements. According to ET’s report, although this multi-level identification and approval process improves security, it also adds a lot of friction and extra expenses.
Startups Fear High Costs, Friction in User Flow
Startups and smaller businesses in particular would find it difficult to absorb these expenses and modify their technical infrastructure, which could impede their ability to develop and compete. If the smaller players must obtain consent each time, the data processing will become even more difficult. It will affect the flow of digital data.
Larger businesses, on the other hand, would be able to handle… yeah, there would be more expenses, but they would be in compliance. However, it will be more difficult for some of the smaller and less experienced players.
MeitY Holds Talks with Industry Stakeholders
Uncertainty regarding compliance also arises from what seems to be ambiguity in the way industry and the government are interpreting the law’s terms. According to experts, the current consent-related talks are reminiscent of the initial argument over data localisation that the Act sparked, in which the government concentrated on the volume of data and the business on its criticality.
The DPDP Act’s Section 17, subsection 5, gives the central government the authority to exclude particular data fiduciaries or groups of data fiduciaries from particular rules for a predetermined amount of time. Before five years have passed since the law’s inception, this exemption may be granted by notification.
According to the ET report, the sector hopes that this clause would provide a window of opportunity to create and execute substitute solutions that adhere to the principles of data protection without impeding digital innovation.
The globe is slowly paving its way towards a cashless society. From invoices to cards and now to mobile wallets, this significant transformation has reduced the weight of bulky wallets. We can pay for any product, transfer money, make bill payments, and almost everything to do with money from the comfort of our home. Payment wallets in India have made online transactions of money easy and fast, with their one-tap feature and quick processing, all at one go.
A mobile wallet is a digital wallet that uses a bank account or credit/debit card to make payments seamlessly while securing the data of the user. They are designed to enable secured transactions with a hassle-free process, with reduced fraud. This method of online payment has proved to be more economical as compared to other physical wallets. These wallets are easily accessible as well from the play-store or app store.
India ranks 2nd highest in the Asia Pacific for digital payment adoption.
Digital payments in India are set to account for 71.7% of the total payments volume by 2025, leaving cash and cheque transactions at 28.3%, according to a report by a US-based payment systems company.
Since Demonetization hit the Indian Economy harshly, the Government promoted the use of these wallets and since then the user base of these e-wallets has been increasing significantly. Many digital wallets by the Indian Government has been given to citizens like UPI, BHIM, Aadhaar Pay and Payment Banks.
How Does A Mobile Wallet Work?
Start by downloading the mobile app of your choice onto your smartphone. Then, load the card information you want to store, from debit, and credit cards to loyalty cards and even coupons.
When you want to make a purchase with your mobile wallet, you can either:
Choose your app and select a card at the checkout screen when you’re shopping online with your smartphone.
Tap your phone to a digital payment-enabled terminal at participating merchants when checking out. Mobile wallets use what is called a Near-Field Communication (NFC) chip that lets you use contactless payment with a physical card.
Types Of Mobile Wallets In India
Closed PPI
Semi-Closed PPI
Open PPI
Definition
Issued by a company to buy goods and services only from that company; it does not permit cash withdrawals or redemptions.
Can be used to buy goods and services from merchants that have a contract with the Issuer to accept the payment instrument; it does not permit cash withdrawals or redemptions.
Allows a user to buy goods and services, withdraw cash at ATMs or banks, and transfer funds.
KYC Requirement
No KYC required
No As Such compulsion for KYC
KYC is Required
Examples
Makemytrip Wallet
Mobikwik
PayTM Payment bank
Are Mobile Wallets Secure?
One security concern when using a mobile wallet is losing your phone or having it stolen. That’s why it’s smart to use something like two-factor authentication, which could include setting up a personal identification number or a fingerprint requirement to unlock your phone.
You can also protect your data by installing apps that will help you locate your phone if you lose it or remotely wipe the data so a thief can’t reach the sensitive information in your phone. If you see any suspicious or unauthorized charges on your account(s), it’s a good idea to immediately change your password and call your bank to let them know.
Paytm is one of the largest online commerce platforms in India offering its customers a mobile wallet to store money and make quick transactions. It is considered by many the best mobile app in India. Paytm was launched in 2010 and basically works on a semi-closed model. Users can load money and make payments to merchants. E-Commerce is an added benefit of it, but despite that, you can make bill payments, transfer money, and avail yourself of services of entertainment, travel, and cashback. Payments through Paytm are accepted almost everywhere.
Google Pay
Mobile Wallet
Google Pay
Founded
2017 (India launch)
Total Downloads
1B+ (on Google Play Store)
Google Pay – Best Wallet Apps in India
It was formerly known as Tez andfor obvious reasons, it gained its user base really quick, in spite of being a late entrant in the mobile wallet industry. It is the best online payment app or best money transfer app with cashback. Google Pay works with your existing bank account, which already means that your money is safe with the bank and no issues with recharging your wallet every month. Send or receive money from your friend directly to your bank account. There is also no such issue regarding KYC making it all the more popular.
BHIM (Bharat Interface for Money) is another best mobile wallet in India. It is a mobile wallet app developed by the National Payments Corporation of India (NPCI), based on the Unified Payment Interface (UPI). Launched in December 2016, it is intended to facilitate e-payments directly through banks. Users register their bank account with BHIM and set a UPI PIN for the bank account. It can be used by both Axis Bank users as well as other bank users. The Mobile Number is then the permanent address and they can start transacting. User can pay their friends, family and merchants with the tap of a button.
PhonePe
Mobile Wallet
PhonePe
Founded
2015
Total Downloads
500M+ (on Google Play Store)
PhonePe – Best Payment Wallet in India
PhonePe was launched in 2015 and is now a part of Flipkart. From UPI Payments to mobile recharges, and money transfers to online bill payments, this can be done easily on PhonePe. With a good user interface, PhonePe has offered the safest and fastest online transaction experience in India.
Mobikwik
Mobile Wallet
Mobikwik
Founded
2009
Total Downloads
50M+ (on Google Play Store)
MobiKwik – Mobile Wallet in India
Mobikwik was launched in 2009 with its key proposition in Recharge and Bill payments. Mobikwik is one of the independent mobile payment networks that has a user base of 32 million. This e-wallet lets its users add money using debit cards, credit cards, net banking, and even doorstep cash services. One of the unique features Mobikwik has offered its users is ‘expense tracker’, basically which allows users to set a budget for expenses via SMS data to analyze and control the expenditure.
This application was launched by the State Bank of India to let users transfer money to other users, pay bills, recharge, book tickets, shop, and travel. This is one of the top mobile wallets in India and has offered its mobile wallet services in 13 languages the best part is, that it is also available to non-SBI customers. It taps into the special feature where-in it allows its users to set reminders for dues, and money transfers, and view mini-statement for the transactions done already.
Citi MasterPass was launched recently by Citi Bank India and MasterCard. This is one of India’s first global outreach in terms of digital wallets for faster and more secure shopping. Citi Bank debit and Master card customers become the first in this country to shop at more than 250,000 e-commerce merchants. It has ensured fast checkout with a single tap and stores all credit, debit, prepaid, and shipping details.
ICICI Pockets
Mobile Wallet
ICICI Pockets (ICICI Bank)
Founded
2016
Total Downloads
5 M+ (on Google Play Store)
ICICI Pockets – Mobile Wallet in India
It’s one of the best mobile wallets in India. It has provided the convenience of using any bank account in India to fund your mobile wallet and pay for transactions. It basically uses a virtual VISA card that enables its users to transact on any website or mobile application in India and provides exclusive deals or packages from associated brands.
HDFC PayZapp
Mobile Wallet
HDFC PayZapp
Founded
June 2015
Total Downloads
10M+ (on Google Play Store)
HDFC PayZapp – Best Wallet in India
PayZapp is a complete payment solution by HDFC Bank which has a one-tap feature for easy payment. Not only does it let you recharge your phone or send money but also your DTH and data cards, pay utility bills, and compare and book flight tickets, trains, hotels and shops.
Amazon Pay
Mobile Wallet
Amazon Pay
Founded
2007 (Global), 2011 (India)
Total Downloads
500M+ (on Google Play Store)
Amazon Pay – Mobile Wallet in India
Owned by Amazon, this online payment processing service was launched in 2017 in India (globally- 2007). Amazon Pay has focused its customers more on Amazon and so it gives its users the option to pay with their Amazon accounts on external merchant websites, including apps like BigBazaar etc. With Amazon Pay, you get to shop on Amazon with a number of cashback and discounts with fast shipping services. Recently, Amazon Pay got tied up with fintech companies, such as Zest Money to enable no-cost EMI payment options. The application has also made it easier for buyers to buy products on Amazon and pay later via affordable monthly instalments.
Samsung Pay
Mobile Wallet
Samsung Pay
Founded
August 20, 2015
Total Downloads
100M+ (on Google Play Store)
Samsung Pay – Mobile Wallet in India
Samsung Pay is a digital wallet service owned by Samsung, it was launched on the year 2015. It is considered one of the best payment processing services for contactless payments. Samsung is accepted in almost every store, wherever credit and debit cards can be used it also offers Cashback. With the help of Samsung pay, the transaction between merchants and payers are possible without the exchange of bank and card information. Samsung Pay accepts all kinds of card readers like magnetic stripes, EMV and others,
Apple Pay
Mobile Wallet
Apple Pay
Founded
October 20, 2014
Total Downloads
Not publicly disclosed
Apple Pay – Mobile Wallet in India
Owned by Apple Inc., Apple Pay is a digital wallet service, which was launched in the year 2014. Major credit and debit cards are supported in Apple Pay, it also provides extreme security through touch and face id. Anyone owning an apple device can use Apple Pay on them for making payments. The card information is kept confidential while making payments. Apple Pay currently is available in more than 60 countries.
WhatsApp Pay
Mobile Wallet
WhatsApp Pay
Founded
February 2018 (India pilot)
Total Downloads
Over 1 billion (WhatsApp Messenger)
WhatsApp Pay – Best Wallet App in India
Launched in the year 2018, WhatsApp launched the chat payment service to allow users to complete any kind of transaction through WhatsApp. The secure way of the transaction enables people to make payments easy just like sending a message on WhatsApp. WhatsApp Pay has also been providing some great features like Cashback to attract more customers. This UPI-based payment service provides the option of sending and receiving money.
Freecharge
Mobile Wallet
Freecharge
Founded
August 2010
Total Downloads
50M+ (on Google Play Store)
Freecharge – Mobile Wallet App in India | Digital Wallets in India
Freecharge is a wallet app that is easy and fast to use for payments. You can recharge your phone, pay bills, and send money to friends. It also works with UPI payments and is popular for online shopping.
Freecharge gives good cashback offers and discounts, which users like. It lets you split bills, so sharing expenses with friends or family is simple. Many stores accept Freecharge for payments both online and in shops.
Airtel Money
Mobile Wallet
Airtel Money
Founded
2012 (initial launch)
Total Downloads
50M+ (on Google Play Store)
Airtel Money – Best Digital Wallets in India
Airtel Payments Bank Wallet is a special service that mixes a mobile wallet with digital banking. You can pay bills, recharge your phone, or send money using UPI. It gives you more interest on your balance than regular savings accounts.
The wallet works well with Airtel services and gives special discounts to Airtel users. You can also withdraw cash from ATMs without a card, using QR codes. It is safe and trusted for your digital banking needs.
Mobile Wallets’ Usage in India
Advantages Of Mobile Wallets
Mobile wallets got popular due to the advantages it offers. Here are listed some of the advantages of using mobile wallets in India
1. One-Click Pay
This is one of the most convenient ways to make payments since the user can pay via such wallets. The mobile wallet takes the information from your card (credit/debit) and makes payments directly or adds money to your wallet. This has offered easy accessibility to users.
2. Multiple Features and Uses
With easy accessibility, it can be used anytime, anywhere. These mobile wallets can be used in a jiffy, it’s just that you need a proper internet connection for your device. Also, your single mobile wallet account can be accessed on any of your devices like laptops, PC, or smartphones with authenticated verification.
3. Robust Security Features
Mobile wallets have tried hard to provide extensive safety and security. Almost more than half of the population has shifted from leather wallets to e-wallets for the protection of their money. Mobile wallets have also reduced the chance of daily theft or losing cash.
4. Several Benefits
They come up with several other benefits like loyalty programs, cashback, rewards, shopping benefits, and many more so that their customers stay happy. Simultaneously, users can also save money through heavy discounts and offers.
How funds in a Mobile Wallet are spent in India
Mobile Wallet vs Digital Wallet
Mobile Wallet
Digital Wallet
Definition
Mobile wallets are payment apps housed on mobile devices, like smartphones and wearables.
Consumers using digital wallets, may or may not interact with them on their smartphones.
Uses
Consumers mostly use a mobile wallet for in-person transactions.
Consumers mostly use a digital wallet for online shopping or purchases.
Examples
Some of the most popular mobile wallets are Apple pay, Samsung pay, etc.
Some of the most popular digital wallets are Paytm, Paypal, etc.
Limitations Of Mobile Wallets In India
Besides the advantages Mobile wallets in India offer in the payment service industry, it has some limitations which are listed below.
A limit is set on the amount that you can deposit in your mobile wallet. For instance, Paytm allows the amount of ₹20,000 in its wallet.
The number of merchants listed or having a tie-up with these wallets is limited. In that case, you would always need to carry some cash in urgency.
Sometimes, Infrastructure issues stand for a lot of lost transactions or common ‘server down’ problems.
Few times, some fraud calls can also cause a possibility of a mobile theft where your personal information is compromised.
One of the major concerns is that a person needs a smartphone to make online transactions possible and that too, with good internet connectivity. This alone has stood a major limit to many poor families, who still carry cash in their pockets.
More than 40% of respondents used a smartphone in India.
While these large numbers and large user bases indicate the growing need for secure, faster, and efficient transaction methods for the online marketplace. Regardless of what we’ve seen and read, top e-wallets in India have outweighed its concerns. The use of e-wallets has constantly increased due to obvious reasons and its surprising offers. Mobile wallets continue to gain prominence in smartphones and laptops across the globe and have dominated the discussions of new ways to pay.
A digital wallet sometimes called an e-wallet, is a service that allows you to pay for things, usually through a mobile phone app. It also stores a number of other items a traditional wallet would hold, such as a driver’s license, gift cards, tickets for entertainment events, and transportation passes.
What is a digital wallet used for?
A digital wallet (or e-wallet) is a software-based system that securely stores users’ payment information and passwords for numerous payment methods and websites. By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology.
Which is better PhonePe or Google pay or Paytm?
Experts suggest that all three digital transaction apps, more or less, are equally secure. While Google’s brand image definitely does some good to Google Pay. Paytm, and PhonePe continue to be easy picks for others due to their many features.
How to get PhonePe cashback?
Steps to get PhonePe cashback:
Download PhonePe App.
Do the needful for PhonePe Login / Signup.
Set Your Virtual Payment Address (VPA)
Click On Bank Accounts From Menu &Link Your Bank Account.
Recharge Your Mobile.
Which Mobile wallet has highest market share in India?
Paytm has the largest market share in India followed by PhonePe and GooglePay.
What is the difference between Paytm vs PhonePe?
Paytm Allows transactions across multiple modes like wallets, UPI, and payment gateway. PhonePe has started its wallet service but it is widely used for its UPI-based transaction which doesn’t charge you for any transaction.
Which wallet app is best in India or write a few Mobile wallet examples?
According to a media agency, several prominent fintech companies have decided to participate in the digital currency pilot program run by the Indian central bank. These companies include Google Pay, PhonePe, Cred, Mobikwik, and AmazonPay.
According to sources who spoke with the news agency, the corporations will accomplish this by providing e-rupee transactions.
Notably, the digital currency pilot program was launched by the Reserve Bank of India (RBI) in December 2022.
At first, the only financial institutions authorized to sell e-rupee through their mobile apps were the central bank. However, fintechs were also permitted to offer e-rupee transactions after RBI’s permission in April of this year.
Then, rumor has it that fintech companies are requesting the central bank clarify the norms of interaction with banks so they can implement use cases for central bank digital currency (CBDC).
Fintech companies are reportedly collaborating with the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI), and the domestic payment authorities in preparation for the e-rupee’s launch in the coming three to four months, according to a prominent news agency’s report.
According to the research, the number of digital currency transactions has dropped significantly from over 1 million per day last year to about 1-2 lakh each day.
Use Cases for Retail CBDCs
This news arrives as reports surface that banks are collaborating with fintech entrepreneurs on a range of fronts to launch retail use cases for Central Bank Digital Currency (CBDCs).
The first round of the CBDC retail trial for NBPSOs is testing two significant use cases. One involves corporate cost management and the other involves subsidy payments for agricultural supplies.
Banks are presently focussing on deploying these use cases, and they will now also collaborate closely with fintech firms to support the CBDC trial.
Following the beginning of the Central Bank Digital Currency (CBDC) experiment in December 2022, RBI deputy governor T Rabi Sankar announced in April that 2.2 crore transactions had been handled.
What is CBDC?
The Reserve Bank of India (RBI) has created CBDCs, a digital token equivalent to the Rupee. Using distributed ledger technology (DLT), it could one day replace physical currency with digital transactions.
The CBDC pilot has been serving both the wholesale and retail sectors since its start in 2022, and an increasing number of institutions are rushing to become a part of it.
The country’s Central Bank unveiled new features, like the ability to make CBDC retail payments offline and using user-defined algorithms, in February of this year to boost CBDC sales.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Amazon.
Online shopping has become a part of daily life for most of us today. A recent survey in 2022 reveals that over 2.14 billion people worldwide shops online, which makes 27.6% of the people out of 7.74 billion people in the world. Thus, it can be concluded that more than one out of four people shops online now.
While the number of e-commerce companies worldwide is growing fast, there are a few pioneer companies that have established themselves as the market leader in the sector, and one of them is Amazon.
Starting in the year 1994 from the founder Jeff Bezos’ garage, Amazon is one of the few companies that joined the 1 trillion valuation club.
Let’s have a look into the startup story of the e-commerce giant, Amazon along with it, discover Amazon’s Revenue, Funding, History, Growth, Competitors and more.
Amazon.com, Inc was launched in 1994 by Jeff Bezos in the United States. Later, it stepped into other countries to increase its market. Amazon India was started in June 2013, and sooner it became one of the biggest eCommerce platforms in India. Initially, the company started by selling books and it expanded to sell electronics, households, software, food, jewellery, and a lot more.
Amazon India Website
Currently, other than being an e-commerce company, Amazon has diversified into a number of domains including cloud computing, Publishing, on-demand music, video streaming, AI, consumer electronics, etc and the company is constantly on the lookout to enter new segments.
Amazon Studios, Amazon Publishing, Amazon Music, and Amazon Web Services are some of its other subsidiaries. In its bid to grow, Amazon has acquired over 100 companies to date.Apart from being the biggest E-Commerce platform, Amazon also offers some pretty exciting and good services and they are:
Amazon Web Services (AWS)
AWS is the web services platform of Amazon, which offers IT infrastructure services to businesses in the form of web services, which is commonly referred to as cloud computing. AWS was launched in 2006, and on March 2, 2021, it was selected by PGA TOUR as its official cloud provider.
Amazon Go
Amazon Go Logo
Amazon Go is a chain of convenience stores that is run under Amazon which was started in the year 2018. The stores are mainly present in the United States and the United Kingdom, the main concept of these stores is that there are no cashiers in the store with whom customers have to deal. Everything is automated there and they have self-checkout stations where customers can pay for their supplies after picking them up from the store. As of now, there are 42+ Amazon Go stores.
Amazon Prime
Amazon Prime Logo
This is the OTT video streaming platform offered by Amazon, it is a subscription-based platform where movies, television series, web series, and other video content are provided for the audience to watch. Amazon Prime was launched worldwide in 2016, however, some countries were excluded then, like North Korea, Mainland China, Syria, Cuba, and Iran. Amazon Prime Video made history as the first streaming service to secure an Exclusive National Broadcast Package from the NFL on March 18, 2021.
“We recognize the need for in-game content by mobile gamers to enhance their playing experience and are delighted to provide access to this content free to Prime members. We will continue to add new in-game content for other popular games, with frequent content refreshes.” –Akshay Sahi, Director and Head of Prime, Amazon India
Amazon Pay
Amazon Pay Logo
This is the online payment processing service provided by Amazon. It was launched in the year 2007. Through this payment service, one can pay from their Amazon account, for goods and services. The payment service is supported by fraud protection technology through which you can complete any transaction securely. Amazon Pay launched Smart Stores on June 26, 2020. The Smart Stores of Amazon Pay is an India-specific programme that would enable the physical stores to serve the customers with a wide range of products that they can easily avail of and pay for just by scanning the QR codes.
“Amazon Pay is already accepted at millions of local shops, we are trying to make customers buying experience at local shops more convenient and safe through Smart Stores.” -Mahendra Nerukar, Amazon Pay CEO
Smart Stores is also coming up with a feature in which a digital store will be available for the customers in which customers can go through the products that the shop is having, can read and update the reviews of the product, and avail many offers which can provide them benefits, and a new type of shopping experience. Many shops have signed up for Amazon Pay Smart Stores and came forward as they have found a new hope to bring their business back on track. Big brands such as Big Bazaar and MedPlus have come forward and have taken a part in this new initiative.
Smart Commerce Initiative
Amazon has announced its Smart Commerce initiative in India, as far as May 18, 2022 reports go. With this initiative, Amazon India has plans to transform the local stores into “Digital Dukaans“. Amazon announced during the 3rd edition of Amazon Smbhav that the company will be fuelling its plans to digitise 1 crore small businesses by 2025 via the launch of its Smart Commerce.
Amazon – Founder & Team
Jeff Bezos (Founder & Former CEO, Amazon)
Jeff Bezos
Amazon was founded by Jeff Bezos (Jeffrey Preston Bezos) in 1994. He is an American entrepreneur and industrialist. After graduating from Princeton University with a degree in electrical engineering and computer science in 1986, Bezos worked for ‘Fitel’ ( a fintech telecommunication startup), where he was working on building a network for international trade. Later Bezos was promoted to head of development and director of customer service at ‘Fitel’.
Jeff Bezos- Amazon Founder
Jeff Bezos stepped down as CEO of Amazon and will be the executive chairman of Amazon. Andy Jassy -The Cloud Computing Chief has been appointed as the new CEO of Amazon.
Andy Jassy (Cloud Computing Chief & CEO of Amazon)
Andy Jassy
Jassy joined Amazon in 1997. He has an MBA from Harvard Business School. It was Andy Jassy who founded Amazon Web Services (AWS), a cloud platform with millions of users. Andy Jassy’s promotion from being a Cloud Computing Chief to the CEO (Chief Executive Officer) of Amazon is remarkable and highlights the importance of web services to Amazon’s future. Andy Jassy has taken over the position of Amazon CEO.
Andy Jassy- Amazon CEO
Amazon – Startup Story
Jeff Bezos jokingly describes founding Amazon as a ‘Regret Minimization Framework’. Jeff did not want to regret not taking advantage of the internet boom that had then started to slowly take the world by storm. Hence in 1994, Jeff left his job as vice president of D.E Shaw & Co. to start his own venture.
Jeff Bezos wrote his company’s first business plan on a cross-country drive from New York to Seattle. Initially, Amazon was registered as Cadabra, Inc. However, when Jeff found out that people misheard the name Cadabra as ‘cadaver’ (cadaver means corpse), he decided to change the name and bought the domain name relentless.com. But that too was changed as his friends did not quite like the name and finally named his company ‘Amazon’.
Jeff listed 20 products that can be sold online, out of which he decided to start with selling books. The first to invest in Amazon was Jeff Bezos’ parents, who invested $250,000 in the venture. By 1997, Amazon had 2.5 million titles.
In 1998, Amazon acquired Junglee Corporation ( provider of database technology to help consumers find products on the Internet) and ‘Planet All’ a social networking, calendaring, and address book site, and with it, the company also started expanding its offerings beyond books.
In 2005 Amazon also entered the crowd-sourcing business with ‘Amazon Mechanical Turk’.
In 2006, Amazon entered the cloud computing sector with ‘Amazon Web Services (AWS) realizing the great scope that the sector holds. In 2006, Amazon entered the video-on-demand sector with ‘Amazon Unbox’.
In November 2007, Amazon released Kindle, its first e-reader, which became quite popular among users. In 2007, Amazon launched Amazon Music.
Another Amazon product that has gained popularity is ‘Alexa’, which is a virtual assistant AI technology developed by Amazon.
Amazon – Name & Logo
Amazon being the largest river in the world, the company was named ‘Amazon’ as Jeff Bezos envisioned his company to be the largest.
Amazon Logo
Amazon’s current logo which the company has been using since the year 2000, has an arrow leading from A to Z, which reflects the company’s goal to provide every product a customer needs. The arrow forms a smile, which represents customer satisfaction.
Amazon – Growth & Revenue
What started as a small online book store has become the world’s largest online marketplace today. Ever since Amazon was launched, it simply grew from strength to strength. The company diversified and explored many horizons, and most importantly, it cemented its position regardless of where it went.
Amazon India marketplace, which is run by Amazon Seller Services, has posted a 49% rise in its revenue from operations that have been recorded at Rs 16,200 crore during FY21 and was last recorded at Rs 10,847.6 crore. The eCommerce giant in India also witnessed a decrease in its losses, which declined from Rs 5849 crore to Rs 4748 crore. However, another unit of Amazon called Amazon Wholesale (India), has scaled down during FY21, posting a 7% drop in its revenue from operations, which decreased from Rs 3384 crore (FY20) to Rs 3131 crore (FY21).
Looking at the sales, Amazon’s sales also skyrocketed at an unimaginable pace, which has significantly contributed to the growth of the business. One another thing is the diversification of its products and the realization of the future of the online shopping and eCommerce businesses at an early stage, which helped Amazon scale leaps and bounds.
Let’s take a detailed look at the Amazon’s funding history. The company has received a total funding amount of $108 million over two rounds. Amazon went public in 1997. Amazon is funded by 2 investors, AOL and Kleiner Perkins.
Investors
Date
Stage
Amount
Investors
July 2001
Funding Round
$100M
–
June 1996
Series A
$8M
Kleiner Perkins
Amazon – Investments
Amazon invested in numerous organisations, keeping a track of which is really difficult if not impossible. The Bezos-founded company has over 118 investments to date.
The Andy Jassy-led company is looking to buy majority stakes in Ecom Express for $500-600 mn. Amazon doesn’t own an in-house logistics and delivery system unlike its rival Flipkart, and to match the Walmart-backed company, Amazon is planning to own an ecommerce logistics and delivery unit. Though both Amazon and Ecom Express are in the preliminary stages of talks, the ecommerce behemoth will likely pick up 51% stakes in the latter, thereby leading Warburg Pincus to quit.
Here we have managed to present to you some of the recent investments of Amazon. Check them out below:
Date of Investment
Name of the Company
Funding Round
Lead Investor
April 22, 2022
Agility Robotics
Series B
–
April 21, 2022
Modjoul
Venture Round
Yes
April 21, 2022
BionicHive
Venture Round
Yes
April 21, 2022
Mantis Robotics
Seed Round
Yes
April 21, 2022
VIMAAN
Venture Round
Yes
January 6, 2022
LeedPay
Pre-Seed Round
–
December 14, 2021
Amogy
Series A
–
December 3, 2021
Dibbs
Corporate Round
Yes
November 9, 2021
MyGlamm
Series D
–
October 19, 2021
Pismo
Series B
Yes
Amazon – Acquisitions
Amazon has had a list of acquisitions since 1994 when it started. The tech giant boasts of 94+ acquisitions and counting. Here’s a list of some of the prominent acquisitions that Amazon made recently:
Date
Name of the Company
Deal Value
April 22, 2022
GlowRoad
–
March 7, 2022
Veeqo
–
December 22, 2021
Prione
–
May 26, 2021
MGM Studios
$8.5 bn
March 30, 2021
Perpule
$14.36 mn
February 16, 2021
Selz
–
June 26, 2020
Zoox
$1.2 bn
October 24, 2019
Health Navigator
–
September 25, 2019
INLT
–
July 31, 2019
E8 Storage
–
Amazon – Business & Revenue Model
Amazon primarily runs an E-commerce business, which runs on an E-commerce business model. The company also has other wings, which run on an array of business models. Besides, Amazon also manufactures numerous products that are sold online and via retail stores across the world.
Amazon Customer Segment
Amazon customers can be divided into:
Sellers – They sell their products to a wide audience using the Amazon platform.
Buyers – They buy from a wide selection of Amazon products and services.
Developers – There are numerous communities involved with the Amazon Web Services (AWS), which include both Amazon customers, partners, businesses, and individuals.
Amazon Value Proposition
The business model of the company, as per the founder of Amazon, Jeff Bezos, depends on 3 value propositions:
Low price
Fast delivery
Wide selection of products
Amazon Channels
The most important channel of Amazon is the Amazon website itself. Some other notable channels of Amazon include Amazon Prime, the Amazon app, and more.
A major portion of Amazon’s revenue comes from its E-commerce business. Besides, Amazon also has 526+ brick and mortar retail outlets, which forms a good source of revenue.
It also makes a huge revenue through Kindle, an electronic device to read books, subscription fee of ‘Amazon Prime’, third-party seller services, advertising revenues, and revenue from Amazon Web Services.
Here are the prominent revenue channels of Amazon:
Sales for one-time
Sales commissions
Advertising
Subscriptions like that of Amazon Prime and the app itself
Web Services (AWS)
Licenses
Patents
Pay-Per-Use and Support Subscription
Amazon – Competitors
Amazon has a lot of competitors in segments such as merchandise, web services, electronics, and media. some of the main competitors of Amazon in its different fields.
Amazon is planning to venture into the health-tech and food delivery business soon. Amazon CEO Jeff Bezos has revealed plans to introduce ‘Amazon Prime Air Drone Delivery Service’, whereby lighter packages will be delivered to customers through drones. The company is also making efforts to make its delivery system more eco-friendly, by including electric vehicles in its delivery services.
Regarding Amazon’s plan in India, the company is planning to create 1 million new jobs in India by 2025. In January 2020, Jeff Bezos announced that Amazon will invest $1 billion in India to help 10 million traders and MSMEs businesses in India to go online. The company is envisioning to enable exports worth $10 billion via Amazon by 2025.
Amazon has announced to facilitate $20 billion worth of exports of Indian goods in the next 3 years, as per Amazon Exports Digest 2022. On average, it makes the company exported Indian goods would have to be $2 billion a year since 2015.
FAQs
What is Amazon’s Funding History?
Amazon received a total funding of $108 million over two rounds. Amazon went public in 1997.
When was Amazon Founded in India?
Amazon launched its operations in India in June 2013. Amazon was founded in July 1994.
Who is Amazon’s CEO?
Andy Jassy is theCEO of Amazon. Jeff Bezos was the former CEO of Amazon.
How much is Amazon’s Revenue?
Amazon India marketplace posted Rs 16,200 crore as its revenue from operations in FY21, which was a 49% increase from Rs 10,847.6, which it saw in FY20. On the other hand, the Amazon Wholesale business of India has witnessed a 7% drop in its operational revenue, which was recorded at Rs 3384 crore in FY20 and became Rs 3131 crore during FY21.
What are Amazon’s keys to success?
A huge number of SKUs, Table of Contents, Free Shipping and Returns, Overnight Delivery, Incredible Customer Service, and Talented Management is the Amazon’s keys to success.
How long did it take Amazon to make a profit?
It took Amazon more than 14 years—58 quarters after its initial public offering to make, as much profit as it produced in the latest quarter.
What is Amazon’s launch year?
Amazon was launched in 1994.
Who is the founder of Amazon?
The founder of Amazon is Jeff Bezos, who is also known as the creator of Amazon.
More precisely speaking the Tapzo was an application aggregator it united application across all classifications under a solitary rooftop. In spite of having a gigantic client base-around fourteen thousand clients, standard memberships, and strong speculations, the startup was esteemed almost at a large portion of the worth of the last round of ventures. This prompted the procurement of Tapzo by Amazon Pay.
Would you be able to envision an application that will aggregately join any remaining applications? You might figure this kind of start-up application can bring in gigantic cash as individuals will frantically utilize such applications. Yet, today we will be going to examine such an application that was fizzled on the lookout.
The application is “Tapzo” which was once advanced by Bhuvan Bam. This application got such a lot of advancement in its initial days that it reached close to 100 million valuations rapidly. Yet, its prosperity didn’t have a long run.
Ankur Singla began this application in 2010. It was not Tapzo in its in front of the pack. It was Akosha who help to oversee the issues of their clients. Then, at that point, it becomes Tapzo in 2016 which was an application aggregator.
The company got 5 million clients in a matter of seconds. They had the best planning to enter the market. They got legitimate subsidizing. They had an astonishing group. Having these, they fizzled. Let’s look at the reasons behind the failure of Tapzo.
They previously made Akosha, then, at that point, they changed over it into Helpchat, and they at last changed over in Tapzo. At the point when an organization changes their business name so habitually, it hampered their standing and trust among the clients and their financial backers. One organization needs to accomplish such a great deal of exploration to enter another market. However, Tapzo didn’t do that appropriately.
Issues in Income
Any organization needs to deal with its income cautiously. However they had an extraordinary application, yet they didn’t have positive capital in their fiscal reports. They got immense support from different financial backers. Whenever they had the cash they utilised it in obtaining clients by advertising. In any case, it didn’t mean they are getting sufficient cash from customers to support on the lookout.
More Reliance on Investors
They generally depended on their financial backers. They began to fund-raise without feeling how might they make the application beneficial. So at first financial backers poured their cash into this promising beginning up, however, when they understood they had no reasonable vision on the future, they quit giving cash. In this way, the application was in the circumstance of liquidation.
Ignoring the Customer Requirements
They didn’t pay much attention to their customers. They didn’t figure out how to function their application so much easier rather they were more into discounts. Yet, a discount isn’t the arrangement, an organization needs to further develop its functional strengths, so a circumstance like giving a discount seldom happens. However, Tapzo didn’t buckle down in that field.
Selling the Organization
This very much subsidized fire-up went available to be purchased in only 40 million dollars to Amazon pay. They had a huge potential to get more exorbitant costs however they couldn’t support themselves in such circumstances for a smidgen of time.
Amazon got this open door and acquired Tapzo as it had immense information on client purchasing propensities and other related information which assists them with being a market aggregator. Different specialists of Tapzo are currently working at Amazon which is presumably an indication of a disappointing fire up.
Conclusion
Doubtlessly no sort of issue what clients are into, it is only out and out to peruse this report about Tapzo’s Story. I was truly pulled in addition to the fact that it included numerous things; however one needs to become familiar with the mix-up. Truly, what’s not to gain from their mistake here?
FAQs
Why is Tapzo closed?
Changing business regularly, Toom much dependent on investors, and ignoring the customer requirements were some of the reasons that led to the downfall of Tapzo.
Who acquired Tapzo?
Amazon acquired Tapzo for $40 million in a cash deal in 2018.
What does Tapzo do?
Tapzo is an aggregator that provided multi-services such as cabs, recharge, food, deals, bills, mobile payments, and news.
Digital payment is a way of performing payments without the use of digital currency. It is also known as electronic payment. In digital payments, both payer and payee rely on digital modes to send and receive money.
In today’s digital era, our dependency on smartphones exceeds the wildest possibilities. Millennials eat, live, and breathe smartphones. In fact, the use of wallets has declined ever since mobile phones started supporting e-wallets. Carrying change and holding debit cards has become a fad of the past. Digital payments have been ingrained in the way people perform transactions today.
The digital payments service sector is growing big, and top tech firms are coming up with innovative payment services of their own. Amazon with amazon pay, Ola money, Apple’s Apple pay and Google with Google Pay are amongst the latest offerings. The emergence of mobile wallets wasn’t an overnight phenomenon. Peter Thiel and Elon Musk’s PayPal was an early initiative. It paved way for several others.
India is not far away in terms of cashless economy; homegrown apps like Paytm and PhonePe are now facilitating payments for millions of Indians. Paytm launched the first active digital payment services in India. It was launched in August 2010 by Vijay Shekhar Sharma and was no less than a disruption. Around 130 million people use Paytm services in India. Facebook recently announced Facebook Pay which will be available on Instagram, WhatsApp, and Facebook.
Cryptocurrency, a digital asset, is being touted as the next step in digital payment services. Facebook has taken a step in this direction. Libra is Facebook’s cryptocurrency. Mark Zuckerberg claims Libra to be the future of banking and transactions, “Libra is a permissioned blockchain digital currency proposed by the American social media company Facebook.” Libra’s initial release is planned in 2020.
With Facebook’s Libra, Mark Zuckerberg wants to disrupt the way how money works. But such initiatives are riddled with issues. Several lawsuits followed post Libra’s announcement. To regulate the working of Libra, it shall be monitored by an independent association called Libra Association; this association would by governed by organizations like Uber, Lyft, PayPal, VISA, MasterCard, etc. Facebook will be maintaining a cryptocurrency wallet called CaLibra. Though Facebook claims Calibra will be maintained with high-grade security and have no effect on one’s privacy, many people don’t believe it.
“Libra is a global cryptocurrency built on blockchain to promote financial inclusion. Libra is digital, mobile, stable, fast, cheap and secure”. An organization independent of Facebook would oversee Libra. CaLibra, the mobile wallet to hold Libra, would be integrated in all the apps owned by Facebook such as WhatsApp, Instagram, and others. Transactions done with Libra would be the same as PayPal or any other medium available today.
The money from your bank account can be transferred into CaLibra that you can use at shopping malls and online stores. You can also get back your money i.e. Libra can be converted to physical money from Libra authorized people. The exchange of Libra currency and the mechanism behind the transactions’ executions still beg reasoning.
The whole Libra blockchain will be organized and maintained by a 28-member strong Libra association comprising Uber, Lyft, VISA, Mastercard, eBay Vodafone, etc. It is proposed to be a non-profit organization with its main office at Geneva, Switzerland.
Each member needs to give $1 million to get one vote in the organization. The organization will elect a representative to oversee the Libra council. Whenever you add money to your Libra account, it goes into the giant Libra reserve which in turn gives you Libra tokens. The value of Libra stays the same irrespective of the volatility in a country’s economy.
Facebook’s cryptocurrency shall cut down transaction fees and establish a global currency. Financial irregularities and hassles in transactions would become a talk of the past.
Like the concerns and question marks accompanying any major announcement, troubles arose for Mark Zuckerberg’s Libra initiative. In the first week of October, PayPal become the first to step out of the Libra association. The reasons for its withdrawal are not known yet. eBay, Stripe and Mastercard followed PayPal by leaving Libra Association.
Soon, Mark Zuckerberg was summoned by the US Congress. He asserted the launch of Libra would not be done without the approval from US regulators. Zuckerberg further emphasized on the need to take risk via innovation for ensuring US retains its position as the global leader. France and Germany blocked Libra and amended certain laws. Many banks and law makers are also changing rules related to monetary transactions.
After these issues, Facebook began losing momentum on Libra’s launch. With the criticisms and questions Libra faced, it’s clear that the world still holds scepticism on the idea of online payments and digital currency transactions through payment apps.
While certain parties continue to loath cryptocurrency, the technology of future is undergoing rapid improvisation. More complex algorithms ensuring hack- proof network and privacy-oriented transactions will catalyse the acceptance of cryptocurrency. The future of digital payment services, though shrouded with negativity and hesitance at present, will stay for decades to come.
Amazon is the world’s leading e commerce business with an annual turnover of over $100 billion and its growth is still exponential. At the same time, Amazon is one of the world’s leading membership businesses with Amazon Prime. The service is believed to have more than 80 million members worldwide.
Amazon Prime is considered an important part of Amazon’s great success. Amazon Prime members pay an annual amount of $99 or a monthly amount of $10.99 and receive free two-day delivery on over 15 million different items. In addition, Amazon provides various content including data storage, movies and music to its core members.
Amazon Prime Logo
Amazon Prime Objective
The primary objective of Amazon Prime is to create loyalty between Amazon and its customers. When the customer has paid $99 or $10.99 for free delivery, he will wish to get the most from the already paid membership fee. In other words, Prime Members get what we call ‘Golden Handcuffs’ within the subscription industry; Benefits for customers. As a result, Prime Members spend three times as much money as non-members on Amazon.com in addition to the membership fee.
Prime is not only critical of Amazon’s current business, with one-third of Amazon’s business derived from Prime membership. Prime is also an important part of Amazon’s strategy for the future that revolves around the complete disintegration of the interaction between e-commerce and retail and the dominance of the same-day distribution market.Amazon has entered the market for groceries in the US, winning a position as a same-day delivery dominator in the market. Amazon Fresh delivers groceries and other goods directly to the customer’s doorstep, the day the goods are ordered. Prime also plays an important role here.
A Prime Fresh subscription at an annual amount of $299 gives customers free delivery of groceries as they often like Other retail and grocery businesses have much to learn from the success of Amazon’s membership. Businesses have the opportunity to tie customers closer to the business through a membership that builds loyalty and makes the customer spend more on your business and less with competitors. It is very likely that we will see substantial use of the membership model within both the retail market and the grocery market – as we have seen it in other industries over the years
Other Prime Service
Amazon Prime Service
Amazon Prime Music
Prime Music is Amazon’s music streaming service. Here users get access to over one million songs, which can be freely downloaded in the “Prime-Library”. Prime users have the opportunity to purchase CDs at a lower price than usual, even though these purchases are rare at these times. Compared to Spotify and other music services, Prime Music’s selection is not volatile, as contestants have more than 20 million songs available, but simply that the selection doesn’t exist is incredibly important and gives loyal customers their money. Gives good value.
Amazon Mom
Prime has further membership. As a Prime Subscriber, it is possible to subscribe as a parent or a family member and thus save 15-20 percent on diapers and similar products. However, the name has been in the news a bit and has since been changed to the more appropriate “Amazon Family”
Amazon Cloud Drive
Amazon cloud drive is Amazon’s “cloud storage”; Amazon’s response to Dropbox. Here, users can store files from their computer, so that it is backed up and so that computer memory is not filled.
Amazon Studio
Amazon Studio is an additional step in Amazon’s long-term plan to reach as many users as possible. Amazon Studios Amazon has its own film production service and intends to produce both TV series and films.
Amazon Prime Instant Video
The video service competes with some relatively big players, including Netflix, Hulu and HBO. However, there are many indications that Prime Instant Video is a major success, especially in terms of getting users to subscribe to Prime or getting users to keep up with Prime
Amazon Prime Two Day Delivery
It was from here that it started. For six years, Prime was only a two-day delivery service and was a real success for subscribers. It was possible to get free delivery with your purchase if you ordered more than $25 and were not a Prime Customer – but as a Prime Customer you could order anything without paying for transportation. Of course, you have indirectly paid for the load – as an annual payment – but in the end most customers have made the most of the savings on free transport or paid in the subscription amount.
Amazon Prime Kindle Service
39 percent of Amazon consumers in the US reportedly own a Kindle reader. Kindle users, who are not necessarily prime subscribers, are often referred to as good subscribers as prime subscribers, as they make more purchases than the “standard” customer. Kindle is the name of Amazon’s e-book reader, which gives users the possibility to buy, download and read e-books anytime on their tablet. Kindle also works with Prime Library, which gives Prime customers the possibility to borrow e-books for free from a website or app
In 26 years, Amazon has managed to grow to be the world’s most successful e commerce company with an annual turnover of over $130 billion and a market value of around $470 billion. Nevertheless, the company still finds itself in the “Day One” in the development of e-commerce, as the vast majority of business between companies and individuals is still physical and psychologically driven by customers into a store or supermarket . This is what Amazon wants to change.
According to Jeff Bezos and Amazon this change will only happen if e-commerce is cheaper, faster and easier for the customer in the future, as the customer has to go to the local store or supermarket. Therefore, the customer, when he is shopping online, must have access to the best and largest selection of items. More importantly, the goods have to be delivered quickly and most often on the same day.
One of the most surprising levers in the making of this change is Amazon turning its customers into customers. The membership model is otherwise not an everyday look in the retail or grocery industry. In fact, it is virtually non-existent, but Amazon has reinforced and revolutionized the concept of membership, and created a very strong formula for customer loyalty with Amazon Prime. In fact, to the extent that it is believed that Amazon has more than 60 million customers worldwide – and is still growing
