E-commerce giant Amazon has infused Rs 350 crore into its fintech arm, Amazon Pay India, as it seeks to bolster its presence in the country’s competitive digital payments space dominated by PhonePe and Google Pay.
The move comes as rival Flipkart’s fintech platform, Super.money, is reportedly in talks to raise $35–40 million in a new funding round, potentially bringing in external investors for the first time.
Regulatory filings with the Registrar of Companies (RoC) reveal that Amazon Pay India allotted 3.5 crore equity shares to its parent entity, Amazon Corporate Holdings Private Limited, through a rights issue. This latest capital infusion follows earlier investments of Rs 300 crore in November 2024 and Rs 600 crore in June 2024, according to an ET report.
Despite Amazon’s continued investments, Amazon Pay’s position in the UPI ecosystem has weakened. According to the National Payments Corporation of India (NPCI), the platform ranked eighth in UPI transaction volume as of March 2025 — down from sixth place a year earlier. It now trails behind PhonePe, Google Pay, Paytm, Navi, Super.money, Axis Bank, and Cred.
NPCI data also shows that PhonePe and Google Pay together command roughly 85 per cent of the UPI transaction volume, while Amazon Pay holds a modest 0.6 per cent market share.
In February 2024, Amazon Pay secured a payment aggregator (PA) licence from the Reserve Bank of India, enabling it to expand its merchant payments operations — a potentially significant growth area given Amazon’s strong e-commerce footprint. This followed an earlier approval for a prepaid payments instrument (PPI) licence.
Amazon Pay currently offers a range of services including UPI transactions, bill payments, and insurance premium payments. It has formed strategic partnerships with platforms like BookMyShow, MakeMyTrip, RedBus, IRCTC, and Kuvera to branch into ticketing, travel, and wealth management.
For the fiscal year ending March 2024, Amazon Pay India reported a 9.22 per cent rise in operating revenue to Rs 2,286 crore, up from Rs 2,093 crore in FY23. The company also managed to narrow its losses by 39 per cent, bringing them down to Rs 911 crore from Rs 1,499 crore.
Meanwhile, the Payments Council of India (PCI) has urged the Prime Minister’s Office to reintroduce the merchant discount rate (MDR) for UPI and RuPay debit card transactions, at least for large merchants. The proposal aims to address concerns around the long-term sustainability of digital payment providers.
Amazon Pay India CEO Vikas Bansal had previously told ET that reintroducing MDR is essential to ensure smaller players in the UPI ecosystem are fairly compensated for their services.
