Influencer Marketing | Real Money Gaming (RMG), FinTech, D2C | Performance Marketing | Equity Research
Why Doesn’t Amazon Push Lending Products? In India, digital platforms like Flipkart, Myntra, Tata Neu, Zepto, etc. frequently advertise personal loans and partner with NBFCs to offer credit products for users. Globally, e-commerce giants like JD(.)com and Alibaba have leveraged lending to boost revenue. Yet, Amazon takes a cautious approach. Why? 1) Market Differences: In China, where credit penetration is ~60%, Alibaba’s Ant Financial thrives with over 1 billion users globally. In contrast, India’s credit penetration stands at just ~5% compared to ~80% in the USA. Amazon’s cautious lending strategy reflects the early stage of India’s digital credit ecosystem. 2) Strategic Focus: Amazon prioritizes ecosystem-building over aggressively expanding into lending. Services like Amazon Pay Later enable purchases but stop short of full-fledged personal loans, aligning with its focus on seamless shopping experiences. 3) Measured Risk Management: For a consumer-first brand as trusted as Amazon, lending risks (defaults, disputes) could harm its reputation. Moreover, lending in diverse markets with stringent and varying regulations, like India's evolving digital lending norms, requires significant compliance efforts. Amazon opts for steady growth in credit via low-risk, purchase-tied solutions. 4) Focus on Core Growth Areas: Instead of deep-diving into lending, Amazon channels resources into high-growth, high-margin areas like AWS, Prime, and logistics, where returns are both stable and scalable. Amazon’s strategy reflects a deliberate choice to protect its brand and grow sustainably in a complex, competitive market. Could this change as India’s credit ecosystem matures, thoughts? #amazon #lending
Product Management| Banker | ex Fintech entrepreneur| Innovation| Consumer Finance| Digital lending | Capital Markets
1moAmazon Pay credit card ?