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Amazon now sells flight tickets in India

Posted by | Amazon, amazon pay, Android, Asia, Booking.com, Google, india, MakeMyTrip, payments, Paytm, Transportation, zomato | No Comments

Indians can already use Amazon to pay for their mobile bills and borrow money to purchase items, but now there’s more. This week, the e-commerce giant quietly introduced an additional feature to its shopping site: flight tickets.

Amazon has partnered with local travel service ClearTrip to add a flight-booking option to its payment service — Amazon Pay — in India, according to an FAQ posted on its website. The feature, first spotted by news outlet Skift, is available on its Indian website and app.

The addition of plane ticketing underscores Amazon’s growing interest in expanding its payment service in India, which is both one of its fastest-growing markets and a country it uses to test new ideas.

Since launching Amazon Pay in India in late 2016, the company has added myriad features to the service. Amazon Pay today allows Indians to top up their phones, purchase cable TV subscriptions and pay for electricity and water bills. Last month, Amazon announced support for peer-to-peer (P2P) money transfers for users of its Android app. Amazon also plans to soon let users order food from its website, local media reported last month.

The company has also inked deals with other top firms such as movie ticketing site BookMyShow, food delivery startup Swiggy and bus-ticketing startup Redbus to embed Amazon Pay into many popular Indian services. To spur its adoption, the company has offered cashback incentives to those who checkout using Amazon Pay.

The flight ticketing option is not much different. The company is promising a one-time cashback of up to Rs 2,000 ($28.20) for each first booking.

The push comes as many local companies in India and those that operate in the nation begin to mold their apps into so-called super apps. Top mobile wallet service Paytm has expanded to add a number of financial services, including as of this week a credit card, in recent years. India’s ride-hailing service Ola also entered the credit card business this week.

Truecaller, an app that lets users screen for spam calls, has added messaging and payment features in India. The bundling often seems big names work together. For example, Paytm recently partnered with Zomato to test a food-ordering option on the mobile wallet app, a source with knowledge of the partner told TechCrunch.

Amazon’s interest in a flight-ticketing option in India should also help its partner ClearTrip gain a larger foothold in the nation. The company competes with giant MakeMyTrip, Booking.com and Paytm . Google also offers flights in India, though, at the moment, that is limited to search. When it comes to transactions, users are directed to ticketing websites to complete their purchase.

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India’s largest mobile wallet company Paytm now offers a credit card

Posted by | alibaba, Asia, Berkshire Hathaway, citibank, Finance, india, Mobile, Online lending, payments, Paytm, Softbank, Uber, Vijay Shekhar Sharma, warren buffett, zomato | No Comments

Paytm, India’s largest mobile wallet app, has branched out to several businesses in recent years as threat from Google and Facebook grows. On Tuesday, it added another category to the list: credit cards.

The firm, operated by One97 Communications, today unveiled Paytm First Credit Card with lofty benefits as it races to bulk up its financial offerings. The cards, issued by Citi Bank, will be the first in the country to offer unlimited, one percent cashback on purchases, Paytm claimed in a statement. The company is hoping to rope in about 25 million credit card customers in the coming months.

The penetration of credit cards remains very low in India with under 50 million people possessing one. With people conducting most of their businesses through cash in the nation, banks have little understanding of a customer’s credit history and score. And it also doesn’t help that banks in India are still wary of issuing credit cards to those who don’t perfectly fit the traditional blue collar job.

But why is a company that made its name through a mobile payment wallet open to its customers engaging with credit card companies? Paytm itself is struggling to grow its business and retain existing customers. Some of its recent major bets haven’t exactly paid off. Its ecommerce business Paytm Mall remains tiny despite bleeding money.

Yo! The First. Paytm First. pic.twitter.com/5kAxozc2IH

— Vijay Shekhar (@vijayshekhar) May 13, 2019

But more importantly, payments itself has become a commoditized space. Users park their money in Paytm and do transactions from there. Paytm makes money from this accumulated sum. This business flourished for years, especially in the months after the Indian government invalidated much of the cash in the nation. But then the government launched its own payment infrastructure called UPI, which removes the need for a middleman.

This has made payments more convenient for users, who are increasingly jumping ship. UPI apps such as PhonePe that have emerged in the last two and a half years now see more transactions than wallet apps. To make matter worse for Paytm, Google and Facebook — two companies that have larger userbase in India — have entered the payments space. Google Pay reached 100 million installs on Google Play Store recently, and WhatsApp plans a nation-wide roll out of its payment feature in India later this year.

So Paytm is now expanding its financial offerings and credit card play fits well in it. With more than 200 million active users, Paytm rivals banks on both the number of customers and volume of transaction it processes.

“Our new offering is designed to bring utmost flexibility to our customers in their digital payment options and will help spur large-ticket cashless payments,” Vijay Shekhar Sharma, chairman and CEO of One97 Communications said in a statement.

Backed by SoftBank, Alibaba, and most recently Warren Buffett’s Berkshire Hathaway, Paytm has the capital to spur the adoption of its new credit card. As part of the package, Paytm’s credit card holders will be able to avail dining, shopping, travel and other offers that Citi Bank provides to its privilege customers. In the first four months of issuing a card, the company will offer its customers discounts worth Rs 10,000 ($142) on spending of Rs 10,000.

Paytm First Credit Card will work both in India and elsewhere and support contactless transactions. Like any other credit card, customers will be able to pay back a sum in multiple monthly instalments. Paytm First Credit Card will charge users a nominal fee of Rs 500 ($7.1) that will be waived off if their spendings through the card exceeds Rs 50,000 ($710) in a year.

If the gamble works, Paytm will be able to retain some customers and convince many to do big-ticket transactions. For Citi Bank, this partnership is just an easy ploy to acquire some customers.

In the meantime, Paytm continues to aggressively expand its financial offerings. In recent years, it has launched a digital payments bank, and has started to offer prepaid Forex cards for international purchases. It also lets customers buy gold, and employers issue food allowance wallets for their staff. Last year, the company announced Paytm Money to facilitate purchase of mutual funds.

Earlier this year, the company launched Paytm First, a subscription bundle that includes access to subscriptions from other services such as Zomato, Uber, Gaana, and Eros Now. In an interview with TechCrunch late last month, Paytm’s Sharma said payments is the moat around which you can build a number of services. “Now that’s a business model… payment itself can’t make you money.”

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