Amazon’s Rs 350 crore bet on Amazon Pay in fintech showdown

Amazon Pay aims to intensify efforts to compete with market leaders PhonePe and Google Pay, which dominate 85% of the UPI market, while Amazon Pay holds a modest 0.6% share, according to NPCI data

E-commerce giant Amazon has infused ₹350 crore into its digital payments arm, Amazon Pay India, as part of its ongoing strategy to strengthen its foothold in the highly competitive fintech space.

Regulatory filings with the Registrar of Companies reveal that Amazon Pay India has issued 3.5 crore equity shares through a rights issue to parent companies Amazon Corporate Holdings Private Limited and Amazon.com. This latest capital injection follows earlier infusions of ₹600 crore in June 2024 and ₹300 crore in November 2024, signalling the tech major’s continued commitment to scaling its fintech operations in India.

Amazon Pay is looking to ramp up efforts to challenge market leaders PhonePe and Google Pay, which together control nearly 85% of the Unified Payments Interface (UPI) market, according to recent data from the National Payments Corporation of India (NPCI). In contrast, Amazon Pay holds a modest 0.6% share of UPI transactions.

Amazon Pay secures key licenses

The fresh investment comes months after Amazon Pay secured a payment aggregator licence from the Reserve Bank of India in February 2024, building on its existing prepaid payment instrument (PPI) authorisation. These regulatory approvals are expected to broaden its capabilities in merchant and customer payments.

Amazon Pay currently offers services including UPI transfers, utility bill payments, insurance premiums, and has formed partnerships with platforms such as MakeMyTrip, BookMyShow, IRCTC, and Kuvera, expanding its reach into travel, entertainment, and wealth management.

On the financial front, Amazon Pay India reported a 9.22% increase in operating revenue for FY24, reaching ₹2,286 crore. Losses were also trimmed significantly, dropping 39% to ₹911 crore from ₹1,499 crore in the previous fiscal year.

The fresh capital is expected to support further innovation and expansion in one of the world’s fastest-growing digital payments markets.