Amazon acquires Emvantage to spruce up online payment platform for India

Amazon has confirmed to acquire Emvantage Payments, a privately held company that offers services in the area of online payments.Emvantage has developed a series of payment solutions including a payment gateway, mobile payment solutions and prepaid card solutions. The acquisition of Emvantage will help Amazon accelerate the development of convenient and trust worthy payment solutions for customers and the e-commerce industry in India. As part of this acquisition, Emvantage's employees will join Amazon's payments team to develop innovative payment products and solutions, specifically for the Indian market."We are laser focused on providing customers in India with a convenient and trust worthy shopping experience" said Srinivas Rao, Director Amazon Payments India. "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.”As this report explains, the biggest reason behind the acquisition could be Amazon's strategy to enhance the user experience and provide a hassle-free payment ecosystem as Emvantage offers several payment solutions across the board. In addition, Amazon will also be able to save on the commission that payment gateways charge. It usually comes up to about 2 percent of the transaction size as commission, says the report.Subject to customary closing conditions, the acquisition is expected to close in the first quarter of 2016.