Amazon injects $41m into Amazon Pay India to boost FinTech push

By Gloria Methri

E-commerce giant Amazon has infused ₹350 crore (approximately $41 million) into its Indian digital payments arm, Amazon Pay, in a bid to strengthen its position in the country’s rapidly evolving FinTech landscape. This latest capital injection follows a ₹600 crore investment made earlier this year, bringing Amazon’s total investment in Amazon Pay India to ₹950 crore by the end of 2025. ​

Amazon Pay is seeking to expand its presence in India’s competitive digital payments sector, which is currently dominated by players such as PhonePe, Google Pay, and Paytm. According to data from the National Payments Corporation of India (NPCI), Amazon Pay processed 68 million UPI transactions worth ₹7,419 crore in May 2024, accounting for approximately 0.9% of the total market share. ​

In February 2024, Amazon Pay received a payment aggregator licence from the Reserve Bank of India (RBI), enabling it to offer a broader range of merchant payment services. The company also holds a prepaid payment instrument (PPI) licence since 2017, allowing it to operate digital wallets. ​

Beyond payments, Amazon Pay has been expanding its offerings to include services such as bill payments, ticket bookings, insurance premium payments, and buy-now-pay-later (BNPL) options. In April 2024, the company partnered with the NPCI to introduce credit services through UPI, aiming to enhance its value proposition to customers. ​

Amazon Pay’s user base has been growing steadily, with reports indicating over 100 million customers using its UPI services for various transactions. The platform has also established partnerships with 8.5 million brick-and-mortar sellers and more than 10,000 online merchants, reflecting its commitment to expanding its merchant network. ​

Despite these efforts, Amazon Pay continues to trail behind its rivals in terms of transaction volumes and market share. The company’s recent investments underscore its commitment to bridging this gap and consolidating its presence in India’s rapidly evolving digital payments ecosystem.