By Mr. Abhay Ray 
Introduction
E-commerce major Amazon has injected ₹350 crore into Amazon Pay India as its fintech arm gears up to intensify competition with top players like PhonePe and Google Pay. Amazon Pay India has allotted 3.5 crore equity shares to its parent entities, Amazon Corporate Holdings Private Limited and Amazon.com, through a rights issue, regulatory filings with the Registrar of Companies (RoC) showed. This comes after Amazon had infused ₹300 crore in November 2024 and a ₹600 crore infusion in June 2024.
Amazon Doubles down on India’s Fintech Market with Major Investment
Amazon has invested ₹350 crore into its Indian digital payments arm, Amazon Pay, reinforcing its commitment to the country’s growing fintech sector. This move is part of Amazon’s broader strategy to expand its footprint in India’s competitive digital payments space, dominated by players like PhonePe, Google Pay, and Paytm. Despite holding less than 1% market share in UPI transactions, Amazon Pay continues to grow steadily, processing 6.8 crore UPI transactions worth ₹7,419 crore in May alone. The company also secured a Payment Aggregator license from the RBI earlier this year, enabling it to offer expanded services to merchants. This fresh capital injection brings Amazon’s total investment in Amazon Pay India to ₹950 crore in 2025, signaling its intent to become a stronger contender in the country’s digital finance ecosystem.
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.
Conclusion
Amazon’s ₹350 crore investment in Amazon Pay India marks another bold step in its mission to solidify its position in the country’s dynamic fintech space. With cumulative investments reaching ₹950 crore in 2025, Amazon is clearly committed to scaling its digital payments arm despite facing tough competition from established players like PhonePe and Google Pay. While Amazon Pay currently holds a modest market share, its growing transaction volume, regulatory approvals, and expanded merchant partnerships point to a long-term strategy focused on building a comprehensive, customer-centric financial ecosystem. The recent Payment Aggregator license, participation in the RBI’s digital currency pilot, and continued push into new service areas like travel, entertainment, and wealth management show Amazon’s ambition to diversify and deepen its offerings. As India’s digital economy rapidly evolves, Amazon Pay’s focus on innovation, partnerships, and regulatory alignment could help it carve out a stronger presence in the country’s increasingly crowded fintech landscape.
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