Amazon infuses Rs 350 crore into India payments business amid growing competition

US ecommerce large Amazon has infused Rs 350 crore into Amazon Pay India, because the fintech arm seems to step up its sport towards main cost firms reminiscent of PhonePe and Google Pay.Amazon Pay India has allotted 3.5 crore fairness shares to its guardian entities Amazon Company Holdings Non-public Restricted and Amazon.com by means of a rights problem, regulatory filings with the Registrar of Firms (RoC) confirmed.

ET has reached out to Amazon India in search of feedback.

This funding follows a Rs 300 crore fundraising in November 2024 and a Rs 600 crore infusion in June 2024, reported by ET.

The transfer comes as rival Flipkart’s fintech app, Tremendous.cash, is actively in search of recent funding. On January 13, ET reported that Flipkart is in superior talks to steer a $35-40 million funding spherical for Tremendous.cash, which might doubtlessly embrace exterior traders for the primary time.

Information from the Nationwide Funds Company of India (NPCI) reveals that Amazon Pay was the eighth-largest Unified Funds Interface (UPI) participant by transaction quantity in March 2025, down from the sixth place a yr earlier. It presently trails PhonePe, Google Pay, Paytm, Navi, Tremendous.cash, Axis Financial institution, and Cred.

In line with the most recent accessible NPCI information, PhonePe and Google Pay dominate the UPI house with a mixed market share of practically 85%, whereas Amazon Pay holds a market share of roughly 0.6%.In February 2024, Amazon Pay obtained a cost aggregator (PA) licence from regulator Reserve Financial institution of India. The licence bolsters Amazon’s service provider funds enterprise, offering a serious development alternative given its sturdy on-line procuring presence in India. The PA licence adopted the corporate’s earlier approval for a pay as you go funds instrument (PPI) or pockets licence.

The corporate competes with different platforms to supply a wide range of providers, together with invoice funds, UPI transactions, and insurance coverage premium funds.

It has additionally shaped strategic partnerships with firms reminiscent of BookMyShow, MakeMyTrip, RedBus, IRCTC, and Kuvera, increasing its providers to film and journey ticketing and wealth administration.

For the monetary yr ended March 2024, Amazon Pay India reported a 9.22% improve in working income to Rs 2,286 crore (from Rs 2,093 crore in FY23). The corporate additionally decreased its losses by 39%, bringing them all the way down to Rs 911 crore from Rs 1,499 crore the earlier yr.

In a major improvement, final month, the Funds Council of India (PCI), an business physique representing digital funds firms, wrote to the Prime Minister’s Workplace (PMO) requesting the reintroduction of a merchant discount rate (MDR) on RuPay debit playing cards and UPI transactions, however just for giant retailers.

In a previous conversation with ET, Vikas Bansal, CEO of Amazon Pay India, emphasised that implementing MDR for UPI transactions is essential for smaller gamers to obtain a fair proportion of the worth they contribute to the cost ecosystem.