Amazon’s ‘buy now, pay later’ service has amassed 2 million users in India leading to speculation its could be rolled out to other markets.
Amazon Pay Later, the retail giant’s own BNPL service, has now been used more than 10 million times since launching in April last year.
The service allows customers to make purchases on credit of up to RS 20,000 (£194) and pay off their purchase in up to 12 interest free instalments.
Unlike many of its major BNPL rivals, Amazon Pay Later also allows customers to pay things like utility bills on credit.
Amazon will be keen to expand the services usage across India, where it has largely struggled to establish a foothold, helping it tap into the rapidly expanding Indian ecommerce market which is expected to be worth $66.76 billion this year.
Despite this, Amazon and other tech giants are facing increasing regulatory pressure in India, with The Reserve Bank of India recently warning specifically against big tech entering the country’s financial services space.
With this in mind, Amazon could well be encouraged to launch its Pay Later service in other markets including the US, where BNPL users are expected to rise 17.9 per cent to 45.1 million this year, according to Business Insider.
While it already partners with third-party BNPL services in Australia and India, a proprietary service would allow the retail giant to capitalise on the rapidly expanding market, which is expected to double by 2024.