Amazon (NASDAQ:AMZN) Pay, Amazon's online payments processing service, announced exclusive festive season offers for debit and credit cardholders of State Bank of India (SBI) on Wednesday. The partnership aims to serve over 30 crore Indian customers, including Rupay cardholders.
Vikas Bansal, whole-time director at Amazon Pay, highlighted the company's diverse payment products in a press release. He mentioned offerings such as Amazon Pay UPI, Amazon Pay Wallet, their flagship Amazon Pay Later, and the Amazon Pay ICICI co-branded credit card. He added that within the Amazon ecosystem, it is faster and more convenient to pay using an Amazon Payment Product. Consumers in Maharashtra have reported a 96% success rate with APP payments.
In addition to its SBI partnership, Amazon is planning to expand its credit card offerings by collaborating with more banks. The e-commerce giant, which boasts a hefty market cap of 1.3 trillion USD according to InvestingPro data, already offers a co-branded credit card with ICICI Bank, which has issued more than 42 lakh credit cards under this collaboration by June 2023. Bansal stated that Amazon sees significant potential for growth in this segment and will consider partnering with more banks and networks.
This growth potential aligns with the InvestingPro Tip that Amazon's revenue growth has been accelerating, and net income is expected to grow this year. For more detailed insights, you can check out the InvestingPro Tips for Amazon.
Bansal also noted a strong interest among small businesses to own a credit card. He revealed that 50% of sales in Maharashtra are made using some of the credit avenues, including the ICICI Bank co-branded credit cards, a pay later offering, and installment plans with other lenders. The usage of the pay later option has grown by 50% in 2023 compared to last year.
Amazon's survey findings suggest positive customer sentiment ahead of the festive season. Over 80% of respondents intend to shop during this year's festive sales, and more than half plan to increase their spending. This is in line with Amazon's robust revenue growth of 10.73% in the last twelve months (LTM2023.Q2), as reported by InvestingPro. Furthermore, 80% of the Amazon Pay ICICI Credit Card holders in Maharashtra have used their cards at least once in 2023. Bansal, however, did not share specific targets or expectations for this year's sale.
With Amazon's strong position as a prominent player in the Broadline Retail industry and its large price uptick over the last six months as per InvestingPro Tips, the company's expansion plans in the credit card segment appear promising. For additional insights, consider exploring the 12 other InvestingPro Tips available for Amazon.
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