Amazon Pay has stepped up its presence in fixed income products by launching fixed deposits for users directly through its fintech app.
The fintech arm of the ecommerce company said it has partnered with 2 non banking financial companies, Shriram Finance and Bajaj Finance, along with 5 banks to offer fixed deposit options on a single platform.
The partner banks include Shivalik Small Finance Bank, Suryoday Small Finance Bank, South Indian Bank, Slice, and Utkarsh Small Finance Bank. Through the app, users can start fixed deposits with an amount as low as Rs 1,000, without the need to open separate savings accounts with each partner institution.
“Fixed income instruments remain hugely popular in India given their simple construct, guaranteed returns, and low risk profile,” said Vikas Bansal, chief executive officer of Amazon Pay.
Amazon Pay said deposits placed through the app with partner banks are insured up to Rs 5 lakh per depositor per bank, in line with Deposit Insurance and Credit Guarantee Corporation norms.
According to Amazon Pay, partner institutions are offering interest rates of up to 8 percent per year. All partners are also providing an additional 0.5 percent interest for senior citizens. Shriram Finance is extending up to 0.5 percent extra interest for women investors.
The move comes at a time when several fintech platforms are strengthening their fixed income offerings by tying up with banks and NBFCs. These fintech companies position themselves as digital origination points for fixed deposit mobilisation, helping regulated institutions attract deposits.
In such arrangements, fintech firms typically act as distribution partners and earn a fee for bringing in deposits. Compared to lending products, the commissions on fixed deposits are usually lower and depend on factors such as deposit size, tenure, and individual agreements with partner institutions.
Over the past few years, several platforms including Stable Money, Super.money, and MobiKwik have entered similar partnerships with regulated financial entities to offer fixed deposit products to their users.
With this expansion, Amazon Pay is looking to tap into India’s strong preference for fixed income investments while giving users a simple and consolidated way to access multiple fixed deposit options from a single app.
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