Amazon Pay is planning to offer “scan and pay" service in neighbourhood stores, Mint reported citing three people familiar with the matter.
The online payments processing service owned by Amazon has already enabled the scan and pay feature in department store chain Shoppers Stop and grocery chain More is next in the line.
“Since it (Amazon) has a stake in these two chains, it is starting offline payments with these stores. Subsequently, it will start reaching out to merchants, which would take more time as it is in the unorganized sector, said the source.
Amazon has confirmed the development. “We have begun introducing Amazon smile code, a new way for our customers to shop and pay at physical stores like Shoppers Stop, among others," an Amazon spokesperson told Livemint.
“Customers will soon find Amazon smile codes in neighbourhood retail stores, where they can scan and pay for their purchases seamlessly."
The e-commerce giant also has plans to set up 100 kiosks in India by the end of the year to push its offline presence. The Seattle-based company will sell devices including Kindle ebook reader, Echo speaker and Fire TV through the kiosks. The company piloted the idea in Bengaluru in 2017. Amazon now runs two kiosks in Bengaluru and one each in Mumbai, Ahmedabad and Noida.
As many as 300,000 offline, QR-based mobile transactions happen in India on a daily basis, most of which are enabled by Paytm, followed by PhonePe and Google Pay.
“The pace at which we are growing, we will catch up soon and also give tough competition to any other players that are coming into this space. We have been acquiring close to 700,000 merchants/stores per month," Vivek Lohcheb, head of unorganized business at PhonePe, told Livemint.
Amazon Pay UPI was recently added to the Android platform.“It’s everyone’s dream to own the customer and the merchant, but the way UPI has panned out, one has to take a call if it wants to work on the merchant side or the customer side," Ashneer Grover, chief executive of payments firm BharatPe told Livemint.
“While Amazon Pay can work with Shoppers Stop and More because of the stake it has, I am not sure about how it will capture the long-tail merchants—as there is no additional value proposition for the merchant," he added.