Newz Desk, Durgapur: E-commerce giants Amazon and Flipkart are set to make major inroads into India’s consumer and small-business lending sector, signalling a new phase of competition for traditional commercial banks. According to agency reports on Friday, both companies are exploring a range of financial products aimed at expanding their footprint beyond online retail.
Amazon, led globally by billionaire Jeff Bezos, has already begun preparations to scale up its lending operations. Earlier this year, the company acquired Axio, a Bengaluru-based Non-Banking Financial Company (NBFC). With this acquisition, Amazon plans to intensify its focus on Buy-Now-Pay-Later (BNPL) services and personal loans for individual customers. Axio, under Amazon’s ownership, is also preparing to offer cash management solutions and extend loans to small and medium enterprises to strengthen the ecosystem of sellers on Amazon’s platform.
Flipkart, majority-owned (80%) by Walmart, is also gearing up for a full-fledged entry into financial services. In March this year, the company registered its NBFC arm, Flipkart Finance, which is currently awaiting approval from the Reserve Bank of India. Once RBI clearance is received, Flipkart is expected to roll out a suite of lending products for online shoppers. These may include no-cost monthly instalment loans with tenures ranging from 3 to 24 months, along with consumer durable loans that could carry annual interest rates between 18% and 26%.
Amazon and Flipkart Step Into Lending Business, Set to Challenge Traditional Banks
The potential offerings from Flipkart are positioned to compete directly with commercial banks, which typically offer consumer durable loans at interest rates varying from 12% to 22% per annum. By leveraging customer data, digital platforms and constant retail engagement, both e-commerce firms aim to acquire borrowers more efficiently and provide faster, app-based approvals.
Industry experts believe that Amazon and Flipkart’s entry into lending could reshape India’s retail credit landscape. Their large customer bases, advanced data analytics, and integrated digital ecosystems could enable them to offer tailored financial products, challenging the dominance of conventional banks in the consumer lending space.
As both companies await regulatory permissions and refine their financial strategies, the move marks a significant shift—transforming India’s biggest online marketplaces into emerging fintech powerhouses.
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