The company continues to focus on security and reliability to ensure customers experience the ease and convenience of transacting digitally
E-commerce giant Amazon India’s payments unit Amazon Pay India has seen a 55.4% increase in its advertising promotion expenses at Rs 2212.7 crore for the fiscal ended 31st March 2020 compared to Rs 1423.8 crore in the previous fiscal.
According to Registrar of Companies filing – shared by market intelligence firm Tofler, total expenses excluding depreciation jumped to Rs 3234.8 crore from Rs 1994.9 crore.
The company has widened its net loss to Rs 1,868.5 crore from Rs 1,160.8 crore in the previous fiscal. The company’s operating loss stood at Rs 1918.7 crore.
Amazon Pay, which competes with Paytm, Flipkart’s PhonePe, and Google Pay, has seen a 64% growth in its revenue at Rs 1,370 crore compared to Rs 834.5 crore. The company earns revenue from rendering of services primarily represents transaction fees/commission fees earned from payment processing and joint promotion services.
91% of the company’s revenue was earned from external customers compared to 93.70% in the previous fiscal.
As per the filing, Amazon Pay India has received Rs 2,705 crore in the financial year 2020 from Amazon Corporate Holdings Private Limited and Amazon.com.incs Limited.
Amazon Pay India allotted shares to these entities worth Rs 450 crore in June, Rs 900 crore in October, and Rs 1,355 crore in December 2019. These entities were allotted shares worth over Rs 700 crore in September this year.
Amazon Pay India is a subsidiary of Amazon Corporate Holdings Private Limited.
The filing said that the company’s mission is to build the most trusted, simple, and rewarding digital payment experience. Millions of customers use Amazon Pay for a wide variety of payments including shopping on Amazon.in, recharges and bill payments, money transfers, QR code payments at millions of offline merchants, and online payments at thousands of merchant websites and apps.
Amazon Pay partners with banking, NBFCs, fintech and merchant partners to deliver these services. “This year, your Company launched UPI for iOS users, launched the minimum KYC pre-paid instrument (PPI) wallet, scaled adoption of Amazon Pay ICICI credit card, operationalized the insurance corporate agency license, and launched new ticketing use cases including flights, buses, and movies.”
It further stated that the company’s continued focus on security and reliability to ensure customers experience the ease and convenience of transacting digitally.
The filing noted that COVID-19 lockdown and social distancing norms impacted the company’s ability to onboard new offline merchants as well as perform in-person KYC for our wallet customers.
“Albeit this situation has accelerated development of new remote technology-driven alternatives for these processes which we believe would both improve customer experience and reduce costs for the business.”