The Emvantage acquisition
Amazon recently announced the acquisition of Emvantage, an Indian startup that provides a platform to make online payments using debit or credit cards and other mobile payment systems. Amazon will integrate its Indian (EPI) web portal with the Emvantage payment gateway to facilitate users making online transactions. Amazon is currently using Paytm.
Earlier, Paytm was the only online payment company to facilitate online merchants with their online transactions. In 2014, the company started its e-commerce service to compete with Indian e-commerce giant Flipkart, Amazon (AMZN), and Snapdeal. In fact, Snapdeal is having its own payment gateway system like KlickPay and FreeCharge. In September 2015, Flipkart acquired FX Mart to integrate its website with the payment portal.
Indian e-commerce market growth
Flipkart is the largest e-commerce player in India (EPI). The Indian e-commerce market is experiencing strong growth. According to a report from Business Standard, citing Morgan Stanley (MS), India could become the fastest-growing e-commerce market in the world. It could grow from $2.9 billion in 2013 to $100 billion by 2020 at a compound annual growth rate of about 66%.
In fact, in August 2015, Alibaba (BABA), China’s (MCHI) largest e-commerce player, and SoftBank entered the Indian e-commerce market by investing $100–$125 million each in Snapdeal. eBay (EBAY) is another player that’s trying to gain market share in India. It’s been present in India for ten years.