Featured
Amazon on Tuesday said it was acquiring Indian payments company Emvantage. Financial terms were not disclosed.
While the deal is largely inconsequential to Amazon's operations here in the U.S., it's a big indicator of how the company is posturing for a bigger slice of the Indian e-commerce market.
Emvantage enables online merchants to accept mobile, credit and debit card payments. It also offers services that allow merchants to establish their own branded pre-paid debit cards.
Put together, Emvantage's portfolio is catered perfectly to the Indian population, which is known for having little affiliation with traditional banking systems. According to a 2015 report from the World Bank, India -- the world's second most populous country -- is home to 21 percent of the world's unbanked adults.
"We are laser focused on providing customers in India with a convenient and trust worthy shopping experience" said Srinivas Rao, Director Amazon Payments India, in a statement. "Emvantage is a valuable addition to our team as we accelerate our payment offerings, ensuring the best in class online payment experience anywhere that customers shop with us."
Amazon first entered India's e-commerce market in 2012. Two years later, Amazon CEO Jeff Bezos committed to a $2 billion investment in the region as part of the company's expansion plans.
"We see huge potential in the Indian economy and for the growth of e-commerce in India," Bezos said in a 2014 announcement. "At current scale and growth rates, India is on track to be our fastest country ever to a billion dollars in gross sales. A big 'thank you' to our customers in India -- we've never seen anything like this."
As part of the acquisition, Emvantage employees will join Amazon's payments team in India.