Amazon Pay Targets Small Towns with Credit Services Push

Amazon Pay is reorienting its business strategy toward smaller towns and cities across India, recognising a significant shift in its customer demographics. According to Vikas Bansal, chief executive of Amazon Pay, 75 per cent of the platform's users now live outside major metropolitan areas, signalling a major opportunity for expansion beyond urban hubs.

The pivot comes as the fintech sector increasingly seeks growth in India's tier-two and tier-three cities, where digital payment adoption has accelerated in recent years. Amazon Pay's move underscores how payment platforms are now competing aggressively for customers in smaller towns, moving beyond the saturated markets of India's largest cities.

The company is particularly focused on offering credit solutions to this expanding customer base. Credit products have emerged as a key differentiator for payment platforms seeking to deepen customer relationships and increase transaction volumes. By targeting smaller towns where credit access remains limited, Amazon Pay aims to capture underserved populations seeking flexible borrowing options.

The strategy reflects broader trends in India's fintech landscape, where companies are investing heavily in rural and semi-urban markets. As smartphone penetration and internet connectivity improve in smaller centres, payment platforms and financial services firms are intensifying efforts to convert these customers into regular users of advanced financial products beyond basic payments.