NEW DELHI — Digital payments and financial services firm Amazon Pay India Private Limited has reported a 33% widening of its standalone net loss to ₹1,148.5 crore for the financial year ended March 31, 2026 (FY26), according to regulatory filings accessed via business intelligence platform Tofler. The firm had posted a net loss of ₹865.7 crore in the previous fiscal year (FY25).
The surge in losses comes despite a solid top-line recovery. Revenue from operations grew 18.5% year-on-year to reach ₹2,484.4 crore in FY26, compared to ₹2,096.6 crore recorded in FY25.
Escalating Operational Costs Outpace Revenue Growth
While revenue experienced healthy double-digit growth, total operational expenses surged by 22%, outpacing income expansion and stretching the company's net deficit.
Amazon Pay operates across multiple consumer payment touchpoints in India, including:
Amazon Pay Wallet & UPI: Integrated payment solutions across online merchants and biller ecosystems.
Buy Now Pay Later (BNPL): Short-term consumer credit offerings.
Co-Branded Credit Cards: The ICICI Bank Amazon Pay credit card, which has scaled to over 5 million active users nationwide.
Financial Products: Value-added services including insurance distribution, travel bookings, and digital gold.
Competitive Pressures and UPI Dynamics
India’s UPI landscape remains heavily concentrated around market incumbents PhonePe and Google Pay, which together command the majority of transactional market share. Amazon Pay’s share of UPI transactions stood at 0.39% in FY26, facing stiff competition from emerging players such as Navi and BHIM.
Compared to industry rivals like PhonePe and Paytm—each operating at annual revenue scale around ₹8,000 crore—Amazon Pay's top line remains relatively modest.
Strategic Shift Towards Digital Credit and Financial Services
In response to market dynamics, Amazon Pay is refining its long-term playbook in India. CEO Vikas Bansal highlighted that the company is actively prioritizing high-margin financial services and digital credit over chasing pure UPI transaction volume.
By leveraging its co-branded ICICI credit card, merchant lending options, and insurance cross-selling, Amazon Pay aims to improve unit economics and pave a sustainable path toward profitability in the coming fiscal years.