Amazon Pay India Gets Fresh Funding

In a move to strengthen its position in India's rapidly growing digital payment sector, Amazon has infused Rs 600 crore (approximately $72 million) into its payment service, Amazon Pay India. This investment is aimed at boosting Amazon Pay's performance and competitiveness in a market with immense potential.

The Indian digital payment domain is projected to see significant growth in the coming years. Current estimates suggest the market could generate a total transaction value of $254.6 billion in 2024, with a potential surge to $394.4 billion by 2028. This represents a compound annual growth rate (CAGR) of 11.6% from 2024 to 2028, indicating the substantial business opportunity for players in this space.

So far this year, Amazon has committed a total of Rs 950 crore to Amazon Pay India, with Rs 350 crore previously invested in February. This financial backing underscores Amazon’s dedication to growing its payments platform amid fierce competition.

As of May 31, Amazon Pay India touted 67.5 million prepaid wallets and had processed more than 623 million transactions, which were valued at over Rs 211 crore. These numbers reveal a healthy uptake of Amazon Pay's services among Indian consumers, which is an encouraging sign for the company's growth trajectory in the country.

Amazon Pay finds itself in a tight race with major competitors such as Paytm, Google Pay, PhonePe—owned by Flipkart, and WhatsApp Pay from Meta Platforms. Tech giants like Alphabet’s Google and Walmart are also concentrating their efforts on cementing their presence in India's digital payment sector, which amplifies the competitive landscape.

Additionally, Amazon announced a broader commitment to India with a planned $15 billion investment over the next seven years. This decision is geared toward enhancing its e-commerce business and infrastructure within the country, reflecting a long-term strategic focus on the Indian market.

The sizable investments and projections underscore Amazon's vision to capitalise on India's evolving digital landscape. With a combination of strategic funding allocations and comprehensive investments in its e-commerce and payment platforms, Amazon is seeking to establish a robust foothold in one of the world's most promising markets.