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Published on
April 25, 2025
5 min read
As the Competition in India’s Digital Payments Sector Grows, Amazon Has Invested ₹350 crore Into Amazon Pay India
Amazon has invested ₹350 crore into Amazon Pay India to strengthen its position in the competitive Indian digital payments market. According to The Economic Times, Amazon made this strategic move to make Amazon Pay stronger against market leaders PhonePe and Google Pay.
The investment arrives at a time when Flipkart’s fintech app Super.money seeks fresh funding as the competition in India’s fintech industry continues to intensify.
Strategic Investments and Market Position
Amazon Pay India has allocated 3.5 crore equity shares to its parent companies, Amazon Corporate Holdings Private Limited and Amazon.com. Which came into place through a rights issue, as per filings with the Registrar of Companies. This follows previous investments of ₹600 crore in June 2024 and ₹300 crore in November 2024.
Market penetration of Amazon Pay remains limited after their extensive marketing initiatives. The National Payments Corporation of India (NPCI) indicates that Amazon Pay holds the eighth position among UPI transaction providers after PhonePe, Google Pay, Paytm, Navi, and Super.money, Axis Bank, and Cred. PhonePe and Google Pay together command nearly 85% of the UPI market, while Amazon Pay holds approximately 0.6%.
In February 2024, Amazon Pay received a Payment Aggregator (PA) license from the Reserve Bank of India, enhancing its merchant payment capabilities. This followed an earlier approval for a Prepaid Payment Instrument (PPI) or wallet license.
Amazon Pay has a marketplace collaboration with businesses like BookMyShow, MakeMyTrip, RedBus, IRCTC, and Kuvera. This has helped extend its services to movie bookings, travel tickets, and wealth management.
Operating revenue of Amazon Pay India increased by 9.22% during FY24. In March, it reached ₹2,286 crore from ₹2,093 crore in FY23. The business lowered its annual losses by 39%, with an improvement from ₹1,499 crore to ₹911 crore during the previous fiscal year.
Navigating a Competitive Fintech Landscape
Fintech competition in India is growing fast, and Amazon Pay has made a new strategic move to stay ahead. Flipkart continues to support its fintech app, Super.money, by raising fresh funding rounds. The company is leading a $35–40 million capital increase, which may include new outside investors.
According to a publication, five payment companies, including Amazon Pay, Google Pay, PhonePe, Cred, and Mobikwik, plan to join the Reserve Bank of India’s digital currency pilot program. They aim to offer e-rupee transaction services as part of this initiative. After a strong start, the use of the e-rupee dropped, so these companies want to get more people to use it.
Vikas Bansal from Amazon Pay India discussed the necessity of applying the Merchant Discount Rate (MDR) to UPI transactions. Mr. Bansal declared that implementing an MDR policy will guarantee that small operators get their rightful share from the payment system value they generate.
Amazon seeks to bolster its position in the rapidly evolving financial technology sector through continued funding of Amazon Pay India. Through strategic spending and necessary regulatory approvals, and business partnerships, Amazon Pay aims to provide improved services to its diverse customer and merchant base in India.
