Amazon Pay, holding a modest 0.6% market share, aims to expand its services following its recent payment aggregator licence from RBI.
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FRANCIS MASCARENHAS/Reuters
E-commerce major Amazon has injected ₹350 crore into Amazon Pay India as its fintech arm gears up to intensify competition with top players like PhonePe and Google Pay.
Amazon Pay India has allotted 3.5 crore equity shares to its parent entities, Amazon Corporate Holdings Private Limited and Amazon.com, through a rights issue, regulatory filings with the Registrar of Companies (RoC) showed.
This comes after Amazon had infused ₹300 crore in November 2024 and a ₹600 crore infusion in June 2024.
The competition in the space is intensifying as Flipkart’s fintech app, Super.money, is also expanding and is looking to raise funds.
As per the latest NPCI data, PhonePe and Google Pay continue to dominate the UPI ecosystem, collectively accounting for nearly 85 per cent of the market. In contrast, Amazon Pay holds a modest share of around 0.6 per cent.
In February 2024, Amazon Pay secured a payment aggregator (PA) licence from the Reserve Bank of India, strengthening its position in merchant payments. This regulatory approval builds on its earlier licence for a prepaid payment instrument (PPI), paving the way for broader fintech offerings.
Amazon Pay offers a range of services—from UPI transfers and bill payments to insurance premium payments—while competing with established players in the market. It has also broadened its ecosystem through strategic alliances with platforms like BookMyShow, MakeMyTrip, RedBus, IRCTC, and Kuvera, enabling it to branch into travel bookings, entertainment, and wealth management.
Financially, Amazon Pay India posted a 9.22% rise in operating revenue for FY24, reaching ₹2,286 crore, up from ₹2,093 crore in FY23. Notably, it also narrowed its losses by 39%, bringing them down to ₹911 crore compared to ₹1,499 crore the previous year.
Published on April 25, 2025
