The UPI transactions are currently free but may charge an additional cost soon.
Amazon Pay has reportedly announced to offer peer-to-peer transaction using Unified Payments Interface UPI platform on the Amazon app. The company went live on UPI in February in partnership with Axis Bank.
Reportedly, the P2P transactions will help Amazon Pay to provide the full range of UPI services. It will also support in expanding business-to-business (B2B) services of Amazon Pay for kirana stores. The rivals of Amazon, including Phone Pay, Paytm and Google Pay, have already enabled P2P transactions on their platform.
The UPI transactions are currently free but may charge an additional cost soon. Kotak Mahindra Bank has reportedly announced that it will charge users after the first 30 P2P transactions, starting from May 1.
Google Pay has reportedly clocked the payments worth INR 43,000-45,000 crore in March with the lead in UPI transactions space. Amazon Pay has reportedly claimed that the success rate of the company is 2-3 percent points higher than industry standards.
Vikas Bansal, Director of Amazon Pay India, reportedly stated that the company will improve and strengthen the bank and NPCI integrations further, aiming for 100 percent success rate.
Reportedly, Amazon Pay has also been pushing its offline presence. The company has launched ‘scan and pay’ services at Shopper Stop stores. It also aims to launch the QR code using scan and pay service at More stores.
According to reliable sources, Customers currently lack simple and intuitive way to transfer money. The experience is sub-optimal due to lack of mandatory cool off restriction for new contacts, multiple log in steps and standard user interface. Bank transfers are a high customer friction process, especially for low value, high frequency payments.
For the record, Amazon Pay, owned by Amazon, is an online payment processing service. The payment service was launched in the year 2007. It helps users to pay with their Amazon accounts on or off Amazon website.