Amazon has made a fresh capital infusion of ₹350 crore into its digital payments subsidiary, Amazon Pay India, as part of its ongoing efforts to reinforce its foothold in the country’s highly competitive fintech landscape. The Indian digital payments market, currently led by PhonePe and Google Pay, has seen rapid growth, and Amazon’s latest move signals its intent to stay relevant in the space.
According to regulatory disclosures filed with the Registrar of Companies (RoC), Amazon Pay India issued 3.5 crore equity shares to its parent company, Amazon Corporate Holdings Private Limited, through a rights issue. This investment follows earlier infusions of ₹600 crore in June 2024 and ₹300 crore in November 2024, reflecting Amazon’s sustained commitment to its Indian payments business.
Despite these efforts, Amazon Pay’s standing in the Unified Payments Interface (UPI) ecosystem has seen a decline. Data from the National Payments Corporation of India (NPCI) reveals that the platform ranked eighth in terms of UPI transaction volume as of March 2025, slipping from sixth place a year earlier. It currently lags behind market leaders such as PhonePe, Google Pay, Paytm, Super.money, Navi, Axis Bank, and Cred. NPCI figures also show that PhonePe and Google Pay together dominate the market, accounting for around 85% of UPI transaction volumes, while Amazon Pay holds a modest share of 0.6%.
Amazon Pay secured a Payment Aggregator (PA) licence from the Reserve Bank of India (RBI) in February 2024, enabling it to scale its merchant payments operations further. The licence allows Amazon Pay to enhance its service offerings to its extensive base of sellers and consumers, leveraging its e-commerce ecosystem. The company also holds a Prepaid Payment Instrument (PPI) licence, which permits it to operate digital wallets, a segment where Amazon has built a diverse portfolio of services, including UPI transactions, bill payments, insurance premium payments, and buy-now-pay-later options.
Amazon Pay has established partnerships with various platforms such as BookMyShow, MakeMyTrip, RedBus, IRCTC, and Kuvera to expand its presence into sectors like travel, ticketing, and wealth management. These collaborations are aimed at strengthening its value proposition and deepening customer engagement.
For the fiscal year ending March 2024, Amazon Pay India reported operating revenue of ₹2,286 crore, reflecting a 9.2% year-on-year growth from ₹2,093 crore in FY23. The company also made strides in cost management, reducing its losses by 39% to ₹911 crore from ₹1,499 crore in the previous fiscal.
Amid ongoing discussions in the industry regarding long-term sustainability, the Payments Council of India (PCI) has recommended reintroducing the merchant discount rate (MDR) for UPI and RuPay debit card transactions, at least for larger merchants. Amazon Pay India’s CEO, Vikas Bansal, has expressed support for this proposal, highlighting its importance in ensuring fair compensation for all players in the digital payments ecosystem.
As competition intensifies, Amazon’s continued investments reaffirm its commitment to expanding Amazon Pay’s market presence and bridging the gap with its more established rivals in India’s fast-evolving digital payments landscape.
