Amazon, Flipkart Challenge Banks With New Consumer Loan Push

Amazon, which acquired Bengaluru-based non-bank lender Axio earlier this year, plans to revive small business lending through the platform; while Flipkart is preparing its own consumer lending push.

Amazon and Walmart-owned Flipkart are preparing to expand their presence in India’s financial services sector with new loan offerings aimed at both consumers and small businesses, intensifying competition with traditional banks.

Amazon, which acquired Bengaluru-based non-bank lender Axio earlier this year, plans to revive small business lending through the platform. Axio, currently focused on buy-now, pay-later (BNPL) and personal loans, will also introduce cash management solutions for merchants and small enterprises selling on Amazon.

“We see tremendous headroom for expanding credit growth in India, particularly among digitally engaged customers and small businesses outside of the top cities,” said Mahendra Nerurkar, vice-president for payments for emerging markets at Amazon. He added that Amazon is designing customised lending products to help merchants manage cash flow and unlock capital — details that have not been previously reported.

Flipkart, meanwhile, is preparing its own consumer lending push. The company registered its lending arm, Flipkart Finance, in March and is awaiting final approval from the Reserve Bank of India. Regulatory filings show plans for two pay-later products: no-cost instalment loans for online shoppers with tenures of 3 to 24 months, and consumer durable loans with annual interest rates of 18–26 per cent — higher than the 12–22 per cent typically offered by traditional banks and lenders. Flipkart expects to launch the products next year, according to a source familiar with the plans.

India’s consumer loan market has surged from nearly $80 billion in March 2020 to about $212 billion as of March 2025, according to CRIF High Mark, though growth has slowed in recent quarters. The segment — which includes unsecured personal loans, credit cards and financing for consumer durables — remains a high-opportunity space for digital platforms with deep customer reach.

Both Amazon and Flipkart rank among the top 10 apps driving Unified Payments Interface (UPI) transactions, giving them access to extensive consumer and merchant data. “There is immense potential for them to make a dent because they own both the supply-side and demand-side customer data,” said Rohan Lakhiyar, partner at Grant Thornton Bharat. “But execution will be key as they venture beyond core retail.”