India’s digital economy is booming, and now e-commerce giants Amazon and Flipkart are entering the financial sector.
Both companies are preparing to challenge traditional banks with loans, Buy-Now-Pay-Later (BNPL) products, and savings options aimed at millions of consumers and small businesses.
Amazon’s Axio Targets Small Business Loans
Amazon is expanding its financial services through Axio, the Bengaluru-based NBFC it acquired earlier this year.
Previously focused on BNPL and personal loans, Axio will now offer business loans with a larger portfolio.
According to Mahendra Nerurkar, Amazon’s VP for Payments (Emerging Markets), there is “tremendous headroom for credit growth” among digitally engaged small businesses, especially outside India’s major cities.
Axio plans to provide customized lending solutions to help merchants manage cash flow, fund inventory cycles, and unlock working capital—areas where traditional banks often fall short.
Flipkart Prepares BNPL and Consumer Loans
Walmart-owned Flipkart is also entering the lending space through its subsidiary Flipkart Finance, registered earlier this year.
The company is waiting for approval from the Reserve Bank of India (RBI) to launch its products.
Flipkart’s plans include:
No-cost EMIs for 3–24 months on online purchases
Consumer durable loans at 18%–26% annual interest, slightly higher than traditional lenders
Once approved, these services are expected to launch in 2026, creating direct competition for banks and NBFCs in India’s retail loan market.
A Big Opportunity in Consumer Loans
India’s consumer loan market has grown from $80 billion in 2020 to $212 billion in 2025, though growth has slowed recently.
Amazon and Flipkart have a strong edge thanks to customer and seller data, as well as top-ranking UPI payment apps that provide insights into user behavior.
Experts say this could allow these tech giants to make a significant impact on India’s financial services sector.
Amazon Expands Into Savings
In addition to lending, Amazon Pay has partnered with several Indian banks to offer fixed deposits starting at ₹1,000, providing millions of digital users with easy access to formal savings products.
With these moves, Amazon and Flipkart are positioning themselves as full-service financial players, offering alternatives to traditional banks for both loans and savings.
