Amazon Pay India, the digital payments arm of e-commerce giant Amazon, continued to face profitability challenges in FY26, with its losses widening 33% despite a return to double-digit revenue growth after a decline in FY25. The company also witnessed intensifying competition in the UPI ecosystem, as newer players gained ground and its market share declined. Amazon Pay India’s revenue from operations rose 18.5% year-on-year to Rs 2,484.4 crore in the fiscal year ended March 2026 from Rs 2,096.6 crore in FY25, according to its standalone financial statements filed with the Registrar of Companies (RoC). Amazon Pay India enables users to make payments for shopping on Amazon and other services, including utility bills, mobile recharges, ticket bookings, and peer-to-peer UPI transfers. The company also offers digital wallets, insurance, and credit products. Revenue from payment processing fees and commissions constitute its primary sources of income. Amazon Pay also earned Rs 108.2 crore from non-operating activities like interest on current investments which took its total income to Rs 2,592.6 crore in FY26, compared to Rs 2,195.1 crore in the previous fiscal year. On the expense front, advertising and promotional costs remained the largest expenditure, rising 11% to Rs 1,767.6 crore in FY26. These costs included cashbacks, customer incentives, payments to banks for RuPay cards, advertising and publicity campaigns, B2B activities, and sponsorships. Payment processor fees surged 35% to Rs 1,140.6 crore, while employee benefit expenses increased 5% to Rs 224.9 crore, including Rs 55 crore in ESOP costs. Communication expenses grew 30% to Rs 193.2 crore, while legal and professional charges stood at Rs 171.2 crore. The company incurred an additional Rs 243.6 crore in other overheads, including sales commissions and miscellaneous expenses, during the fiscal year. Overall, Amazon Pay's total expenditure increased 22% to Rs 3,741.1 crore in FY26 from Rs 3,060.8 crore in FY25. The rise in expenses, particularly payment processing fees and marketing costs, outpaced revenue growth, resulting in a 33% increase in net losses to Rs 1,148.5 crore in FY26 from Rs 865.7 crore in FY25. Its EBITDA loss also widened to Rs 1,227.4 crore from Rs 952.1 crore, with a negative EBITDA margin of 49.4%. The company's return on capital employed (ROCE) stood at -53.7%. On a unit basis, Amazon Pay spent Rs 1.53 to earn every rupee of operating revenue during the fiscal year. Despite its presence within Amazon's e-commerce ecosystem, Amazon Pay has struggled to maintain its position in India's rapidly expanding UPI market amid growing competition from newer players such as Navi and Flipkart-backed super.money, CRED. According to NPCI data, Amazon Pay processed 95.93 million UPI transactions in August 2026, accounting for just 0.39% of the total transaction volume. PhonePe and Google Pay continued todominatethe market with a combined share of nearly 78%, while newer players have s
