Amazon Pay has introduced a new credit service in India called Amazon Pay Later that offers merchandise repayment extending as long as 12 months. The eCommerce giant is also partnering with Indian Railways so it can get more essential goods to a larger population of people who need them.
There is zero interest if the money is repaid in the next month. Installment plans for up to 12 months are charged a nominal interest rate, according to a statement by Amazon India on Tuesday (April 28).
"Amazon Pay Later is a unique service that will help customers expand their access to credit and experience the most convenient option of making payments," said Mahendra Nerurkar, CEO of Amazon Pay India.
The instant credit line enables users to pay their monthly utility bills as well as purchase necessities, groceries, electronics and clothing.
Amazon Pay teamed with Capital Float and The Karur Vysya Bank (KVB) to launch the Amazon Pay Later service. Based on usage and repayment, customers can increase their credit lines.
“We are always looking for ways to improve our customers’ payments experience on Amazon.in and make purchases more affordable. In current times, Amazon Pay Later empowers our customers to better manage their monthly spends,” Nerurkar said.
Indian Railways already has special trains in place to safely make deliveries during the COVID-19 pandemic, according to a report in India Today on Wednesday (April 29). Amazon is looking to increase operations to 55 lanes while the country is mandated to stay home.
"In these unprecedented times, we understand the importance of ensuring that critical supplies reach our customers across the country. With the support of COVID-19 Parcel Special trains introduced by the Indian Railways, we are confident that we can further fulfill customer orders with enhanced speed and capacity," Abhinav Singh, director of Amazon Transportation Services, Amazon India, told India Today.
Whatsapp is also looking to extend credit in India and filed regulatory paperwork earlier this month. India's digital payments industry is poised to reach $1 trillion by 2023.