Amazon, the global e-commerce giant, has invested Rs 350 crore in its digital payments subsidiary, Amazon Pay India. The fresh capital injection aims to reinforce its position in India’s highly competitive fintech ecosystem. The move comes amid reports that Flipkart’s financial services arm, Super.money, is looking to secure $35–40 million in fresh funding, signaling an intensified battle in the digital payment space.
This latest investment involved the allotment of 3.5 crore equity shares to Amazon Corporate Holdings Private Limited through a rights issue. It follows a Rs 300 crore infusion in November 2024 and a Rs 600 crore investment in June 2024. These consistent investments underline Amazon’s continued focus on scaling Amazon Pay’s operations and expanding its presence in the Indian financial services market.
Despite the capital backing, Amazon Pay's performance in the Unified Payments Interface (UPI) segment has seen a notable decline. According to data from the National Payments Corporation of India (NPCI), Amazon Pay ranked eighth in UPI transaction volume as of March 2025—down from sixth place the previous year.
The platform now lags behind dominant players such as PhonePe, Google Pay, and Paytm, as well as newer entrants like Navi, Super.money, Axis Bank, and Cred. Notably, PhonePe and Google Pay collectively hold around 85% of UPI market share, while Amazon Pay accounts for just 0.6%.
In February 2024, Amazon Pay India achieved a significant regulatory milestone by securing a Payment Aggregator (PA) license from the Reserve Bank of India. This license allows Amazon Pay to broaden its merchant payments infrastructure, a key advantage considering Amazon’s vast e-commerce ecosystem in India. Additionally, the company holds a Prepaid Payment Instruments (PPI) license, empowering it to provide services such as UPI payments, bill payments, and insurance premium settlements.
Through strategic alliances with platforms like BookMyShow, MakeMyTrip, RedBus, IRCTC, and Kuvera, Amazon Pay is also expanding into travel bookings, ticketing, and personal finance management. These collaborations aim to boost customer engagement and increase transaction volume across its platform.
Amazon Pay India reported a robust financial performance for the fiscal year ending March 2024. Operating revenue rose by 9.22% to Rs 2,286 crore, compared to Rs 2,093 crore in FY23. At the same time, the company significantly cut down its losses by 39%, reducing them from Rs 1,499 crore to Rs 911 crore. This improvement indicates efficient cost management and a move toward sustainable operations.
The Payments Council of India (PCI) has recently urged the Prime Minister’s Office to revisit the policy on Merchant Discount Rate (MDR) for UPI and RuPay debit card transactions, particularly for larger merchants. This plea highlights growing industry concerns about the long-term viability of digital payments infrastructure without adequate revenue models.
Amazon Pay India CEO Vikas Bansal has also advocated for the reintroduction of MDR, emphasizing that smaller fintech players require a fair compensation structure to survive in a market dominated by giants. These policy-level discussions could significantly impact the future growth of digital payment platforms in India.
Conclusion: A Critical Phase for Amazon Pay
As competition intensifies and regulatory frameworks evolve, Amazon Pay India finds itself at a critical juncture. While its financial performance has improved and regulatory licenses have strengthened its service offerings, the platform’s low UPI market share remains a challenge. The recent Rs 350 crore investment is expected to enhance its capabilities and support innovation, but long-term success will depend on strategic execution and supportive policy reforms.