Amazon India received the Reserve Bank of India’s approval to launch its own digital wallet in India. This will give the American online retail giant a slice of India’s fast-growing digital payments business pie.

Amazon will now be able to take on Paytm (an acronym for “pay through mobile”) and Freecharge both mobile payment platforms, as it prepares to launch a prepaid wallet service that will be broader in scope than its Pay Balance service which is restricted to only Amazon-based transactions.

Wallet services help customers bypass the two-step authentication process for online payments using credit or debit cards and makes the process smoother for online shoppers while plugging a key gap in the payments process that reduces the risk of loss of business from online shoppers, reports the Livemint.