Amazon, Flipkart Challenge Indian Banks with Pay-Later and Consumer Loan Rollout

Amazon and Flipkart are aggressively expanding into India's consumer lending market, introducing pay-later services and personal loans that directly compete with traditional banks. Leveraging their vast digital ecosystems, both companies aim to capitalize on the surging demand for digital credit in India's e-commerce sector.

Amazon has partnered with Axio to scale its buy-now-pay-later (BNPL) offerings, personal loans, and new credit products for small and medium enterprises. Meanwhile, Flipkart awaits regulatory approval from the Reserve Bank of India to launch its lending arm, which plans to offer no-cost EMIs and high-interest consumer durable loans.

The MOVE signals a broader shift in India's fintech landscape, where big tech platforms are increasingly encroaching on domains traditionally dominated by banks and NBFCs. Their competitive edge lies in seamless user interfaces, vast transaction data, and integrated ecosystems—advantages that have not gone unnoticed by regulators.

The Reserve Bank of India is tightening oversight of digital credit, scrutinizing how tech giants navigate the country's booming lending market. As Amazon and Flipkart rank among the top 10 platforms on India's Unified Payments Interface, their financial ambitions could reshape the future of consumer credit.