Core Insights - Amazon is preparing to launch small business loan services in India, while Walmart's Flipkart plans to introduce Buy Now Pay Later (BNPL) products, indicating a competitive challenge to local banks by these e-commerce giants [1][2] - Amazon acquired Bangalore-based non-banking lending institution Axio earlier this year, which will restart small business credit services and introduce cash management solutions [1] - Flipkart plans to offer two types of BNPL products: interest-free installment loans for online shoppers and loans for durable goods with interest rates ranging from 18% to 26%, compared to traditional lenders' rates of 12% to 22% [2] Company Developments - Amazon's VP of Emerging Markets Payments, Mahendra Nerurkar, highlighted the significant growth potential in India's credit market, especially among digitally savvy consumers and small businesses outside major cities [1] - Flipkart has registered its non-banking lending subsidiary, Flipkart Finance, and is awaiting final approval from the Reserve Bank of India (RBI) for its business plans [1][2] - Amazon has partnered with six local lending institutions to offer fixed deposit savings products on its Amazon Pay platform, with a minimum deposit of 1,000 rupees (approximately $11) [3] Market Context - The Indian consumer credit market has grown from nearly $80 billion in March 2020 to approximately $212 billion by March 2025, although growth has shown signs of slowing in recent quarters [2] - Both Amazon and Flipkart's payment applications rank among the top ten on India's Unified Payments Interface (UPI) platform, benefiting from a recent RBI policy allowing them to lend directly to customers through wholly-owned subsidiaries [2]