Amazon Pay FY23 revenue growth remains flat at Rs 2,093 crore, losses down 13%

Amazon Pay, the digital payments arm of ecommerce giant Amazon reported flat growth in operational revenue at Rs 2,093 crore in fiscal 2023 compared to Rs 1,998 crore a year ago.

The company’s net losses dipped 13% to Rs 1,499 crore in FY23, from Rs 1,740 crore in FY22, mostly driven by a reduction in expenses.

The payments company reported a total expense of Rs 3,629 crore against Rs 3,790 crore a year prior, down 4.2%. Amazon Pay’s employee benefit expenses surged 42.7% to Rs 227 crore in FY23 from Rs 159 crore in the previous fiscal.

While Amazon is one of the largest ecommerce companies in the country, its payment subsidiary has seen limited success amid stiff competition from the likes of Google Pay, Paytm and others. As of November 2023, Amazon has issued around 65.3 million mobile wallets in the country which were used for 3.3 million transactions against goods and services in November alone.

Amazon lags behind the competition in terms of UPI payments too. As per data shared by the National Payments Corporation of India (NPCI), in November the payment application reported 48 million transactions settling Rs 5,737 crore. For context: PhonePe, the largest UPI payment app, was used for 5.2 billion transactions settling Rs 8.5 lakh crore.

In an interaction with ET in June, Vikas Bansal, whole-time director of Amazon Pay India had said that given the payment feature is within the larger ecommerce app, discoverability has been a challenge.

“We are behind in the race in terms of share of transactions, but we have a large customer base and it is just about how we get them to use it and build a habit around it,” said Bansal.