BENGALURU: In the hypercompetitive Indian e-commerce space, the mother of all partnerships — the Facebook-Jio deal that was signed last week — has thrown open challenges for the existing stakeholders, with each of them trying to consolidate business models and strengthen their payment services.  

Global e-commerce giant Amazon has announced the launch of Amazon Pay Later, which will offer credit facilities with EMI options to customers looking to buy groceries, electronics or even pay their monthly bills. Amazon India said it has extended the pilot project to tens and thousands of eligible costumers. The e-commerce giant has partnered with Capital Float and brought Karur Vysya Bank onboard to scale up the service.

This will be in addition to the online payment and digital wallet services being offered by the e-tailer. “Amazon Pay Later is a unique service that will help customers expand their access to credit and experience most convenient option of making payments. In current times, Amazon Pay Later empowers our customers to better manage their monthly spends,” said Mahendra Nerurkar, CEO, Amazon Pay India.
Facebook-backed WhatsApp too is reportedly gearing up to launch its lending service in India.

WhatsApp’s lending service would be in the form of credit and loan facilities, in addition to its mobile payment service, which is currently at a trial phase in the country.

WhatsApp’s 400 million user base in India especially is at the centre of its deal with Jio. The deal focuses on digital transactions through the WhatsApp payment service for orders customers place on Jio’s new commerce platform JioMart.

“The two tech giants are definitely battling it out to tap the small merchant market. Financial services, including digital transactions and small ticket lending, is key to bring the MSMEs on board,” said an analyst.