Amazon Pay India’s operating revenue increased 18.5% to Rs 2,484.4 crore in 2025-26, returning to growth after declining 8% in the previous financial year. Its net loss widened 33% to Rs 1,148.5 crore as payment-processing and promotional costs increased, according to regulatory filings sourced from the business intelligence platform Tofler.
The company’s total expenses increased 22% to Rs 3,741.1 crore, outpacing revenue growth. Payment-processor fees jumped 35% to Rs 1,140.6 crore, while advertising and sales-promotion spending went up 11% to Rs 1,767.6 crore. Together, the two expenses accounted for nearly four-fifths of the company’s total costs. Employee benefit costs rose 5% to Rs 224.9 crore.
The performance reversed the trend over the previous three years, during which Amazon Pay India, the digital payment and financial services platform of the US-headquartered etailer Amazon, reduced its losses. In 2024-25, its loss narrowed to Rs 865.7 crore from Rs 911.2 crore, even as operating revenue fell to Rs 2,096.6 crore from Rs 2,286.9 crore.
Amazon Pay earns payment-processing and commission fees and operates a prepaid wallet. Embedded within Amazon’s shopping app, it offers Unified Payments Interface (UPI) payments, bill payments and services spanning ticketing, insurance premium payments and wealth products through partners.
The Reserve Bank of India (RBI) granted it an online payment aggregator licence in February 2024, allowing it to process and settle payments for online merchants. The licence lets it process payments for merchants beyond Amazon’s marketplace, widening a business anchored to its ecosystem.
Despite Amazon’s large ecommerce distribution, its UPI presence remains small. Amazon Pay processed 95.9 million UPI transactions in August, accounting for 0.39% of transaction volume, while PhonePe and Google Pay together controlled 78.3%, data based on National Payments Corporation of India figures showed.
The results come as the economics of UPI are set to change. From October 15, eligible merchant UPI payments above Rs 2,000 will carry charges of up to 0.4%, giving payment apps a direct revenue stream that could partly offset processing costs. However, the benefits will depend heavily on transaction mix and scale.
Amazon has also been building a broader financial services business around payments and credit. In September 2025, the company completed its acquisition of Axio after RBI approval through an all-cash deal pegged at $200 million, according to people familiar with the matter. The deal gave Amazon access to a non-banking financial company licence, allowing it to lend directly rather than solely distribute loans originated by partner institutions.
Axio, formerly Capital Float, had worked with Amazon for more than six years and powered Amazon Pay Later. At the time of the acquisition, it served more than 10 million customers and managed assets of about Rs 2,200 crore. Amazon said it would deepen checkout finance and expand into personal and small-business loans through the lender.
Axio operates as a separate Amazon subsidiary. Its operations are therefore not included in Amazon Pay India’s standalone 2025-26 financial statements.
