India’s booming digital economy is witnessing a new wave of competition—this time in the financial sector. E-commerce giants Amazon and Flipkart are gearing up to challenge traditional banks with tailor-made loans, BNPL products, and innovative savings options aimed at millions of Indian consumers and small businesses.
Amazon’s Axio to Offer Tailored Loans for Small Businesses
Amazon is preparing to make a deeper foray into financial services through Axio, the Bengaluru-based NBFC it acquired earlier this year. Axio, previously focused on BNPL and personal loans, will now restart business lending with an expanded portfolio.
According to Mahendra Nerurkar, Amazon’s VP for Payments (Emerging Markets), the platform sees “tremendous headroom for expanding credit growth” among digitally engaged small businesses, especially those outside India’s top metros.
Axio will create customised lending propositions to improve merchant cash flow, fund inventory cycles, and unlock working capital—problems that small businesses often struggle with due to traditional banks’ strict lending criteria.
Flipkart Awaits RBI Nod for Pay-Later and Consumer Loans
Walmart-owned Flipkart is simultaneously preparing to launch large-scale BNPL and loan products through its subsidiary Flipkart Finance, registered earlier this year. The company awaits final approval from the Reserve Bank of India to begin operations.
According to filings, Flipkart plans to offer:
- No-cost EMIs for 3–24 months on online purchases
- Consumer durable loans at 18%–26% annual interest, higher than the 12%–22% typically charged by traditional lenders
Once approved, these products are expected to roll out in 2026, creating direct competition for banks and NBFCs dominating the retail loan market.
Digital Lenders Target India’s $212 Billion Consumer Loan Market
India’s consumer loan market has surged from $80 billion (2020) to $212 billion (2025), but growth has slowed in recent quarters. Still, tech giants have a strong advantage—deep access to both customer-side and seller-side data.
Their apps also rank among the top 10 UPI payment platforms, giving them unrivalled behavioural insights that can help design more accurate risk models.
Consultants say this could allow Amazon and Flipkart to make a “significant dent” in India’s financial services landscape.
Amazon Expands into Savings Products Too
Alongside lending, Amazon Pay has partnered with several Indian banks to offer fixed deposit products starting at ₹1,000—bringing formal savings tools to millions of digital users.
