Amazon Invests Rs 350 Crore in Amazon Pay India Amid Growing Demand
E-commerce giant Amazon has made a significant investment of Rs 350 crore into its fintech subsidiary, Amazon Pay India, aiming to strengthen its foothold in the fiercely competitive digital payments market. This strategic move comes as rival Flipkart’s fintech platform, Super.money, is reportedly seeking to raise $35–40 million in a new funding round. Despite Amazon’s ongoing investments, the company faces challenges in the Unified Payments Interface (UPI) ecosystem, where it has slipped to eighth place in transaction volume.
Amazon Pay’s Recent Investment and Market Position
Amazon’s latest capital infusion into Amazon Pay India involves the allotment of 3.5 crore equity shares to its parent company, Amazon Corporate Holdings Private Limited, through a rights issue. This follows previous investments of Rs 300 crore in November 2024 and Rs 600 crore in June 2024. Despite these substantial investments, Amazon Pay’s standing in the UPI ecosystem has declined. As of March 2025, the platform ranked eighth in UPI transaction volume, a drop from sixth place the previous year. Currently, it trails behind major competitors such as PhonePe, Google Pay, Paytm, Navi, Super.money, Axis Bank, and Cred. According to the National Payments Corporation of India (NPCI), PhonePe and Google Pay dominate the market, collectively accounting for approximately 85% of UPI transaction volume, while Amazon Pay holds a mere 0.6% market share.
Licensing and Service Expansion
In February 2024, Amazon Pay received a payment aggregator (PA) license from the Reserve Bank of India, allowing it to expand its merchant payment operations. This license is crucial for Amazon Pay, given the company’s extensive e-commerce presence in India. The fintech arm also holds a prepaid payments instrument (PPI) license, further enhancing its capabilities. Currently, Amazon Pay offers a variety of services, including UPI transactions, bill payments, and insurance premium payments. The company has established strategic partnerships with platforms such as BookMyShow, MakeMyTrip, RedBus, IRCTC, and Kuvera, enabling it to diversify into ticketing, travel, and wealth management sectors.
Financial Performance and Future Prospects
For the fiscal year ending March 2024, Amazon Pay India reported a 9.22% increase in operating revenue, reaching Rs 2,286 crore, compared to Rs 2,093 crore in FY23. Additionally, the company successfully reduced its losses by 39%, bringing them down to Rs 911 crore from Rs 1,499 crore. This improvement in financial performance indicates a positive trajectory for Amazon Pay, despite the competitive pressures it faces in the digital payments landscape.
Industry Concerns and Recommendations
In light of the challenges faced by digital payment providers, the Payments Council of India (PCI) has urged the Prime Minister’s Office to reconsider the merchant discount rate (MDR) for UPI and RuPay debit card transactions, particularly for larger merchants. This proposal aims to address concerns regarding the long-term sustainability of digital payment providers. Amazon Pay India CEO Vikas Bansal has previously emphasized the importance of reintroducing MDR to ensure that smaller players in the UPI ecosystem receive fair compensation for their services. As the digital payments landscape continues to evolve, these discussions will be crucial for the future of companies like Amazon Pay.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
