What Amazon Pay does

Amazon Pay (Amazon Payments, Inc.) is a wholly-owned subsidiary of Amazon.com, Inc., founded in 2007 and headquartered in Seattle. It operates an online checkout service that enables third-party merchants to accept payments from Amazon's 300M+ active customer accounts, with a published rate of 2.9% + $0.30 per domestic U.S. transaction and 3.9% + $0.30 per cross-border transaction. The platform is distributed through direct API/web integration, pre-built plugins across 16+ commerce platforms (Shopify, Stripe, WooCommerce, BigCommerce, Adobe Commerce, PrestaShop, OpenCart, X-Cart, Miva, Recurly, FoxyCart, 3dcart, ShopSite, Volusion, LemonStand), and a global partner program, with additional modules including Buy with Prime, Express Payout (24-hour disbursement), Amazon Pay with Affirm, Citi Flex Pay, and Invoice Payment. Core technology reuses Amazon.com's AI/ML-based fraud detection and risk management infrastructure, and supports web, mobile, and Alexa channels.

Amazon Pay also operates a broader fintech product in India, launched in 2019, embedded within Amazon.in and the Amazon app. India product surface includes UPI payments, digital wallet, biometric PIN-free UPI authentication (launched December 2025 for transactions up to Rs 5,000), fixed deposit distribution launched in January 2026 with seven bank and NBFC partners, BNPL (Amazon Pay Later), travel, recharges, and insurance. The India unit received RBI cross-border payment aggregator licensing in August 2024, and additional capital infusions of approximately $60M in 2021 and $41M in 2025 from parent Amazon.

Amazon Pay's revenue model is transaction-based for the global checkout business (domestic and cross-border processing fees plus a $20 chargeback dispute fee), with distribution/affiliate fees in India from FD partners and interchange from BNPL. Geographic coverage spans 17+ countries including the U.S., U.K., Germany, France, Italy, Spain, Japan, and India. Despite global reach and 100M+ India users, Amazon Pay holds only ~0.6% of India's UPI market and is sub-scale against dominant local players, while competing against Stripe, Adyen, and PayPal in Western markets.

Name

Amazon Pay

Legal name

Amazon Payments, Inc.

Website

https://pay.amazon.com

Company type

Private

Founded year

2007

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Amazon Pay is a wholly-owned Amazon subsidiary that provides a transaction-based online checkout service for third-party merchants leveraging Amazon's 300M+ customer accounts, with pre-built integrations across 16+ commerce platforms and a multi-product fintech offering in India covering UPI, fixed deposits, and biometric payments.

Ownership category

akta.pro rank

Product category

Digital Payment Processing

NAICS

Financial Transactions Processing, Reserve, and Clearinghouse Activities (52232), Sales Financing (52222)

SIC

Finance Services (6199)

akta.pro primary industry

Merchant Payment Gateways (API/Hosted Checkout) (FSAMACAA)

akta.pro secondary industries

Bill Pay, Invoicing & Payables Platforms (BPAMAFAF), Embedded Payments (Pay-ins, Pay-outs, Wallets) (FSAGALAB), Alternative Payment Methods (APMs) & Local Rails (ACH/SEPA/UPI, etc.) (CRAFALAG)

Keywords

• Online payment processing
• Digital checkout solutions
• Ecommerce payment gateway
• UPI digital payments
• Merchant payment services

Headquarters

HQ city

Seattle

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Payment Processing — Domestic (U.S.): Amazon Pay charges merchants a transaction fee of 2.9% + $0.30 per domestic transaction for web and mobile checkout. This covers both authorization and processing. The fee is applied upon successful transaction capture. Domestic credit and debit card processing (Visa, Mastercard, Discover, Amex, Diners Club, JCB) is supported. Refunds return the domestic processing fee portion but not the authorization fee.
2. Cross-Border Payment Processing: For transactions where the customer's payment method is issued outside the U.S., Amazon Pay charges 3.9% + $0.30 per transaction (cross-border processing fee plus authorization fee), plus applicable taxes. This is applied upon capture.
3. Chargeback/Dispute Fee: A fee of $20.00 plus applicable tax is assessed for each chargeback dispute that is not covered under Amazon Pay's Payment Protection Policy.
4. Fixed Deposit Distribution (India): Amazon Pay in India launched fixed deposit services (January 2026) in partnership with banks and NBFCs, offering interest rates up to 8% per annum. The platform earns distribution/marketing fees from partner financial institutions for facilitating FD investments starting from Rs 1,000.
5. BNPL / Pay Later Integration (India): Amazon Pay offers Amazon Pay Later as a buy-now-pay-later option in India. Amazon Pay is also listed as a payment option for BNPL providers like CRED and LazyPay, generating interchange/transaction revenue on UPI and card payments.

Pricing tiers

Go-to-market motion2 records

Distribution channels6 records

Marketing channels7 records

Core offering

Amazon Pay is an online payment processing service that enables merchants to accept payments on their websites using Amazon customer accounts, offering a trusted, frictionless checkout experience powered by Amazon's 300M+ active customer base. The platform supports web, mobile, and Alexa-based transactions, and in India operates as a digital wallet offering UPI payments, fixed deposits, biometric authentication, and additional financial services.

Product overview

Amazon Pay is a multi-channel online payment platform operated by Amazon that offers two primary solutions: (1) Amazon Pay Checkout for merchants to accept payments on their ecommerce sites, and (2) Amazon Pay for Shoppers enabling consumers to pay using their Amazon credentials. The merchant platform integrates with major ecommerce platforms (Shopify, Stripe, BigCommerce, WooCommerce, Adobe Commerce) and offers additional modules including Express Payout for fast fund disbursement, Buy with Prime for fulfillment services, Buy Now Pay Later via Affirm, and Invoice Payment. In India specifically, Amazon Pay operates as a digital wallet offering UPI payments, fixed deposits (up to 8% interest), travel bookings, recharges, insurance, and the most recent launch of biometric PIN-free authentication for UPI transactions up to ₹5,000.

Differentiator

Problem solved

Functional benefit

Products and services

• Amazon Pay Checkout Online payment solution that enables merchants to offer Amazon customers a fast, secure checkout experience using shipping and payment information stored in their Amazon account. Accesses over 300 million worldwide active customer accounts.
• Buy with Prime Service that empowers merchants to offer Prime shopping benefits (fast, free shipping and returns) on their own ecommerce sites. Uses Amazon Pay technology to verify Prime member status and process secure checkout.
• Amazon Pay India (Digital Wallet) Digital payment service for India offering wallet balance, UPI payments, fixed deposits, travel bookings, recharges, insurance, and transit payments. Available through the Amazon app with integration across partner brands and financial institutions.
• Fixed Deposits (India) Fixed deposit distribution service in India offering interest rates up to 8% per annum, partnering with multiple NBFCs and banks. Minimum investment starting from Rs 1,000, with deposits insured under DICGC protection up to Rs 5 lakh.
• Amazon Pay Cards Includes Amazon Store Card, Amazon Visa Card, and Amazon Secured Card for use on Amazon.com and partner merchants. Offers installment options including Amazon Pay with Citi Flex.

Quantifiable outcome

• 35% higher conversion rate vs. native merchant checkouts
• +3 more outcomes

Named customers13 records

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration18 records

AI capability3 records

Feature6 records

Partnerships

Eleven partnerships are on record, tiered minor and core.

• ZomatominorGTM or Marketing Partner · 24 December 2025Zomato partnered with Amazon Pay in December 2025 to offer cashback rewards to customers using Amazon Pay Balance for food orders. The initiative aims to enhance user engagement and build an integrated digital payment ecosystem. Launched during the Amazon Great Indian Festival 2025 period.
• Reserve Bank of India (RBI)coreOthers · 1 August 2024Amazon Pay, along with BillDesk and Adyen, secured cross-border payment aggregator licenses from India's Reserve Bank of India in August 2024, joining Cashfree as authorized aggregators for cross-border payments in India. This enables Amazon Pay to facilitate international payment processing for India-based merchants.
• ShopifycoreTechnology or IntegrationAmazon Pay is available as an integrated payment option within Shopify Payments and as a standalone app. Shopify merchants can activate Amazon Pay with one-click activation. The integration allows Shopify merchants to offer Amazon's trusted checkout to Shopify's extensive SMB merchant base, combining Shopify's ecommerce platform with Amazon Pay's checkout solution.
• StripecoreTechnology or IntegrationAmazon Pay launched as a payment option on Stripe in 2024, allowing Stripe's global merchant base to offer Amazon Pay as an additional checkout method. The partnership was announced through Amazon Pay's blog and Stripe's platform, enabling merchants to differentiate their checkout with multiple payment options.
• Adobe Commerce (Magento)coreTechnology or IntegrationAmazon Pay offers a native integration with Adobe Commerce (formerly Magento), enabling Adobe Commerce merchants to add Amazon Pay checkout directly to their storefront. The integration is available for both Adobe Commerce Cloud and on-premise deployments.
• BigCommercecoreTechnology or IntegrationAmazon Pay provides a secure and tailored checkout experience for BigCommerce merchants. The integration allows BigCommerce merchants to display the Amazon Pay button, leveraging Amazon's brand trust to drive higher conversion rates.
• WooCommercecoreTechnology or IntegrationAmazon Pay integrates with WooCommerce through a dedicated WordPress/WooCommerce plugin. The plugin supports subscription management integration (WooCommerce Subscriptions), sandbox testing, and customizable button language and colors. Setup includes IPN configuration for order management.
• AffirmcoreTechnology or IntegrationAmazon Pay offers 'Amazon Pay with Affirm' — a BNPL (buy now, pay later) option for customers. Merchants can add Affirm as a payment method through the Amazon Pay button, providing flexible installment payment options for consumers. Bartaco is a featured merchant using Amazon Pay with Affirm.
• ICICI Bank (Credit Card)minorGTM or Marketing PartnerAmazon Pay ICICI Bank Credit Card holders receive cashback benefits for Amazon Pay transactions, including during promotional campaigns like Impossible Travel Deals (flight and hotel discounts).
• AU BankminorGTM or Marketing PartnerAU Bank is listed as a payment and fintech partner for Cinepolis India. This represents a third-party listing where Amazon Pay is accepted as a payment option alongside AU Bank, SBI Cards, Yes Bank, Paytm, CRED, and MobiKwik.
• SBI CardsminorGTM or Marketing PartnerAmazon Pay is accepted as a payment option at Cinepolis India locations alongside SBI Cards. Amazon Pay acts as a payment facilitator for card-based transactions.

Scale indicators28 records

Recent moves6 records

Expansion highlights7 records

Direct peers

• Stripe: Stripe is both a direct competitor (its 2024 integration added Amazon Pay as a payment option, but Stripe's own checkout competes for the same merchant relationship) and a partner via integration. Stripe's developer-led GTM and global merchant base mirror Amazon Pay's ambitions in API-driven payment processing.
• Adyen: Adyen is a global enterprise payment processor with the same cross-border payment aggregator license in India as Amazon Pay (granted Aug 2024), competing for the same large merchant relationships. Adyen's unified commerce platform and global enterprise footprint make it the closest functional peer for Amazon Pay's enterprise segment.
• PayPal: PayPal is the most direct peer to Amazon Pay globally — both offer a stored-credential digital wallet that lets shoppers check out on third-party merchant sites without re-entering payment details, with comparable fraud protection and broad merchant acceptance. PayPal's Pay Later, Venmo, and Braintree products compete head-to-head with Amazon Pay's Affirm/Citi Flex integrations and core checkout.
• Paytm: Paytm competes with Amazon Pay across the full India fintech stack — UPI, wallet, fixed deposits, insurance, travel, and merchant payments. Paytm's earlier start, broader product suite, and stronger consumer brand make it a direct head-to-head competitor for the multi-product fintech expansion Amazon Pay is pursuing in India.
• PhonePe: PhonePe is the dominant UPI payment platform in India (~50%+ share) and Amazon Pay's primary competitor in the Indian market where Amazon Pay holds only ~0.6% share. Both offer UPI, wallets, bill pay, and merchant acceptance, but PhonePe has dramatically greater scale and merchant penetration.
• Apple Pay: Apple Pay competes directly with Amazon Pay for merchant checkout share, particularly on mobile web and in apps, with comparable biometric authentication, stored-credential friction removal, and brand-driven consumer trust. As a wallet rather than a gateway, Apple Pay's competitive pressure on Amazon Pay intensifies as iPhone penetration stays high.
• Google Pay: Google Pay is a direct competitor in both the US digital wallet space and India's UPI market, where it ranks #2 behind PhonePe. Both compete for merchant checkout button real estate, biometric UPI authentication, and consumer wallet share, with comparable conversion and trust narratives.
• Block (Square): Block's Square and Cash App compete with Amazon Pay on merchant checkout acceptance and consumer-side stored-value wallets, with comparable SMB GTM motions, instant payout features, and AI-driven fraud capabilities. Block's diversification into BNPL (Afterpay) and banking parallels Amazon Pay's product expansion strategy.

Emerging players

• Shopify Shop Pay: Shop Pay is Shopify's native checkout wallet that competes directly with Amazon Pay for Shopify-merchant checkout share. While currently constrained to Shopify's ecosystem, Shop Pay's accelerating install base among DTC merchants creates platform-loyalty risk for Amazon Pay's Shopify merchant relationships.
• Klarna: Klarna competes with Amazon Pay's BNPL offering (Amazon Pay with Affirm) for merchant installment payment mindshare. As BNPL specialists expand into full checkout experiences, they overlap with Amazon Pay's product breadth in flexible payments.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/amazonpay
• YouTubeyoutube.com/amazonpayuniversity
• Facebookfacebook.com/AmazonPay
• LinkedInlinkedin.com/company/undefined
• Instagraminstagram.com/amazonpay

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds11 records

Investors3 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Amazon Pay