Ecommerce Giant Strengthens Its Digital Payments Arm Amid Rising Competition in India’s Fintech Sector
Amazon has infused ₹350 crore into its digital payments arm, Amazon Pay India, in a strategic move to enhance its footprint in India’s fast-growing Unified Payments Interface (UPI) market. The investment was secured through a rights issue, as per a Ministry of Corporate Affairs (MCA) filing accessed by Inc42.
According to the filing, Amazon Pay issued 35 crore equity shares at ₹10 each to Amazon Corporate Holdings Private Limited and Amazon.com. This capital injection highlights Amazon’s continued commitment to expanding its fintech capabilities in India—one of the world’s largest and most dynamic digital payments ecosystems.
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Strengthening Amazon Pay’s Position in India’s UPI Race
While Amazon Pay has made considerable strides since its inception, the competition in India’s UPI space remains fierce. As per the latest data from the National Payments Corporation of India (NPCI), Amazon Pay ranked 8th in terms of UPI transactions in March 2025. The platform recorded 111.06 million UPI transactions, a notable figure but still behind major players like PhonePe, Google Pay, and Paytm.
This fresh capital is expected to fuel product innovation, merchant expansion, and more aggressive customer acquisition strategies to help Amazon Pay gain greater traction. With this funding, Amazon aims to integrate more seamless payment solutions across its e-commerce platform and further enhance the user experience for both customers and merchants.
Amazon’s Long-Term Commitment to India’s Fintech Space
India continues to be a high-priority market for Amazon. Over the past few years, the tech giant has invested billions across various verticals, including ecommerce, cloud services, and digital payments. Amazon Pay’s growing role in the company’s broader ecosystem demonstrates Amazon’s vision of creating a cashless, digital-first economy in India.
By investing heavily in Amazon Pay, the company is not just aiming to improve transaction volumes but also build a robust financial ecosystem offering services such as bill payments, mobile recharges, insurance, and more. The latest funding round will likely support partnerships with banks, fintech startups, and regulatory bodies to scale operations and comply with India’s evolving financial norms.
Final Thoughts
Amazon’s ₹350 Cr investment into Amazon Pay India is a clear indicator of its ambition to become a key player in India’s booming digital payments sector. As UPI transactions continue to soar, the competition is set to intensify. With this latest move, Amazon is positioning itself to tap into the vast potential of India’s fintech market and secure a stronger foothold in the digital economy.
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