Amazon Pay expands in India with 8% fixed deposits and insurance
Amazon has expanded Amazon Pay in India from a checkout tool into a full financial ecosystem offering UPI, card and bill payments, fixed deposits with partner banks at up to 8% annual interest, and insurance services. The stock fell 1.7% premarket and is down 7.6% year-to-date.
1. Ecosystem expansion
Amazon has transformed its India payment platform into an integrated financial services ecosystem, extending beyond checkout functionality to UPI transactions, card payments and bill settlements within the Amazon Pay app.
2. Deposit services
Consumers can now open fixed deposits directly in the Amazon Pay app through partner banks and non-banking financial companies, with advertised interest rates up to 8% per annum and targeted benefits for specific demographics.
3. Insurance offerings
The platform also added insurance products by partnering with HDFC ERGO, ACKO and ICICI Lombard, offering car insurance with paperless issuance and cashless claim services at over 9,000 garages nationwide.
4. Market reaction
Despite the expansion, Amazon’s shares slid 1.7% in premarket trading and have dropped 7.6% year-to-date, reflecting investor caution due to broader market pressures.