Why Did Amazon Pay Lose INR 1149 Crore in FY 26? Know Reason
Amazon Pay’s loss widened 33% to INR 1,149 crore in FY26 from INR 866 crore in FY25, despite an 18% rise in revenue to INR 2,484 crore. The company’s higher operational expenses contributed to the larger deficit. Amazon Pay is also shifting its focus towards digital credit and other financial services beyond UPI market share.
Amazon Pay, the financial services arm of ecommerce firm Amazon, has reported a widening of its loss by 33% in FY 26, reaching a total of INR 1149 crore equivalent in local currency terms, up from 866 crore reported during FY 25 according to financial filings.
The firm experienced a revenue growth of 18% to reach INR 2484 crore during the financial year, marking a recovery after a decline in the previous fiscal period. Despite the top line expansion, rising operational expenses contributed to the larger net deficit for the digital payments provider. SEBI Settles Hindenburg-Linked Disclosure and Audit Case With 5 Adani Firms for INR 1.5 Crore.
Financial Performance And Revenue Growth
As per a report by Tofler, the company achieved a modest topline increase of 8.6% over the last two years, though its annual revenue remains significantly lower than major competitors such as PhonePe and Paytm, which each record around INR 8000 crore in annual revenue.
Under the Amazon Pay division, the ecommerce firm offers multiple payment products to consumers, including a prepaid wallet, UPI, buy now pay later product, and a co-branded credit card with ICICI Bank that has attracted over 5 million active users in the country.
Strategic Shift Towards Digital Credit
Amazon Pay started its journey in India in 2016 with a prepaid wallet service, followed by the launch of its UPI service in 2019, alongside bill payments, travel bookings, and financial products like digital gold and insurance.
In a recent interaction, Amazon Pay CEO Vikas Bansal stated that the firm is looking beyond market share in UPI for its next phase of growth by expanding digital credit and other financial services across its network. AI Getting Out of Control? Tech Leaders Brief UN on Global Security Risks of Artificial Intelligence.
PhonePe and Google Pay remain the dominant market leaders in UPI, while Amazon Pay ranks among the smaller applications in the top 10 UPI apps rankings, having experienced a gradual decline in transaction market share over the last three years.
(The above story first appeared on LatestLY on Sep 23, 2026 07:39 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
