Amazon Pay targets India’s small businesses with credit push

Amazon Pay says it plans to widen affordable credit access for Indian small businesses, including a new co-branded card for Amazon Business customers and streamlined digital lending options.

— Source publishedSat, 12 Sept, 2026, 10:03 IST·First seen Sat, 12 Sept, 2026, 10:25 IST·Source Business Today · Latest

What happened

Amazon Pay outlined its India strategy to expand affordable credit access for small businesses, including a new co-branded card for Amazon Business customers

Why this matters

Amazon’s SME-credit push may create partnership or acquisition opportunities in Indian lending, credit-scoring, and payments infrastructure as it seeks to embed finance more tightly into its merchant ecosystem.

What to watch

  • Named issuing-bank or NBFC partners, product launch dates and whether the co-branded card carries purchase rewards tied to Amazon Business.
  • Evidence that lending is secured, invoice-linked or unsecured, plus disclosed interest rates, repayment tenors and credit-limit ranges.
  • Amazon Business active-customer growth, repeat-purchase rates and adoption of Amazon Pay among SMEs.
  • RBI guidance affecting digital lending, first-loss-default guarantees, co-branded cards, data consent or lending-service-provider arrangements.
  • Delinquency, collections and underwriting performance among thin-file SME borrowers.
  • Competitive responses from Flipkart, Jio Financial, PhonePe, Razorpay, Paytm, banks and B2B commerce platforms.
  • Add purchase-linked credit offers at Amazon Business checkout, including short-tenor pay-later and invoice-financing products.
  • Expand bank and NBFC partnerships for card issuance, loan origination and collections rather than funding SME loans directly.
  • Use Amazon Business procurement frequency, GST/invoice signals and Amazon Pay transaction history to pre-qualify merchants and tailor credit limits.
  • Bundle credit with supplier-discovery, bulk-pricing, payments and loyalty incentives to shift more offline SME procurement onto Amazon.
  • Target high-frequency categories such as office supplies, electronics, hospitality, kirana replenishment and small manufacturers before broadening eligibility.