It is also offering Rs 100 cash-back as Amazon Pay balance, on a bill of Rs 700 for first-time users.

Amazon has rolled out a 10 per cent cashback-bonanza for users of its mobile wallet ‘Amazon Pay’.

Mumbai: In an effort to lure customers in India, Amazon has rolled out a 10 per cent cash-back-bonanza for users of its mobile wallet ‘Amazon Pay’, valid also on returned items.

According to a report in the Economic Times, the offer is valid once per customer. However, sellers are concerned that this offer may lead to a deliberate increase in returned items, only to avail the cash-back offer.

The Amazon Pay offer also applies to platforms beyond Amazon's own.

The All India Online Vendor's Association (AIOVA) claimed that in the way that Amazon is offering cash-backs to customers returning items, the retail giant should also offer “equal incentives” to the seller whose stock is being returned.

In the ET report, Sriram Jagannathan, Vice President Payments, Amazon India, said “Our aim is to improve the digital payment experiences for customers buying on our marketplace…We provide offers to customers to try this experience”.

Amazon Pay was launched in India in December 2016. It recently invested Rs 130 crore into the Amazon Pay India business. Amazon Pay has been offering a slew of offers to woo customers. It is also offering Rs 100 cash-back as Amazon Pay balance, on a bill of Rs 700 for first-time users.