Amazon Pay India revenue rebounds 18% in FY26, loss widens 33% as costs rise

Amazon Pay India’s operating revenue grew 18.5% to Rs 2,484.4 crore in FY26 after declining 8% a year earlier. Its net loss widened 33% to Rs 1,148.5 crore as payment-processing and promotional costs increased, per regulatory filings sourced from the business intelligence platform Tofler.

The company's total expenses rose 22% to Rs 3,741.1 crore, outpacing revenue growth. Payment-processing fees jumped 35% to Rs 1,140.6 crore, while advertising and sales-promotion spending increased 11% to Rs 1,767.6 crore. Together, they accounted for nearly four-fifths of the company’s total costs. Employee benefit expenses rose 5% to Rs 224.9 crore.

The performance reversed the trend over the previous three years, during which Amazon Pay had reduced its losses. In FY25, 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 also earns payment-processing and commission fees and operates a prepaid wallet. Embedded within Amazon’s shopping app, it offers UPI (Unified Payments Interface) payments, bill payments, and services spanning ticketing, insurance premium payments, and wealth products through partners.

The RBI (Reserve Bank of India) granted it an online payment aggregator licence in February 2024, allowing it to process and settle payments for online merchants. The licence lets it service 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 payments in August 2026, accounting for 0.39% of the transaction volume, while PhonePe and Google Pay together controlled 78.3%, per data based on NPCI (National Payments Corporation of India) figures.

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 the transaction mix and scale.

Amazon has also been building a broader financial-services business around payments and credit. In September 2025, Amazon completed its acquisition of Axio after RBI approval; sources had pegged the all-cash deal at $200 million. This gave Amazon access to an NBFC (non-banking finance 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 had served more than 10 million customers and managed assets of about Rs 2,200 crore. Amazon said it would enhance checkout finance and expand into personal and small-business loans through the lender.

Axio operates as a separate Amazon subsidiary. Its operations are not included in Amazon Pay India’s standalone FY26 financial statements.