In 2025, Amazon and Flipkart have expanded their financial services in India by introducing credit products for consumers and small businesses. This move challenges traditional banking institutions.

Amazon, which acquired the non-bank lender Axio earlier that year, plans to resume lending activities for small businesses and add cash management solutions beyond its existing focus on Buy Now, Pay Later (BNPL) and personal loans.

According to an Amazon spokesperson, there is significant growth potential among digitally engaged customers and small businesses outside major urban centers. The company intends to develop lending products that assist merchants in managing cash flow more effectively and accessing capital efficiently.

Flipkart, owned by Walmart majority, recently registered its non-bank lending unit, Flipkart Finance, with the Reserve Bank of India awaiting final approval for implementation. Two BNPL products are planned: interest-free monthly instalment loans for online shoppers over 3 to 24 months and consumer durable loans carrying annual interest rates of 18% to 26%. This compares to traditional lenders offering consumer durables at an annual rate ranging from 12% to 22%.

Market and regulatory context

India’s consumer loan market has grown significantly, expanding from approximately USD 80 billion in March 2020 to around USD 212 billion by March 2025, as reported by CRIF High Mark. Consumer loans encompass various types such as unsecured personal loans, credit cards, and loans for consumer durables.

Both Amazon Pay and Flipkart apps are among the top ten used for payments through India’s Unified Payments Interface (UPI), providing these companies with substantial reach in the digital finance ecosystem.

Additionally, Amazon has partnered with several local lenders to offer fixed deposit savings products on its platform, starting with minimum deposits of USD 11.