Amazon Pay, Kotak Mahindra Bank launch business credit card for small traders

Amazon Pay and Kotak Mahindra Bank (KMBL) have announced the launch of the Amazon Pay Kotak Business Credit Card, aimed at small and individual traders. The card will be available specifically to users registered on Amazon Business, a digital procurement platform that serves millions of businesses in India.

The card will offer cashback rewards along with an extra interest-free credit period. The companies said this will help traders manage business-related purchases more easily while preserving their working capital.

India's MSME sector has more than 9.4 crore businesses registered on the Udyam portal, contributing more than 30 percent to the country's GDP. Despite this, most small traders do not have access to formal credit products designed for their business needs. As businesses increasingly adopt digital procurement, GST-compliant registration and structured financial processes, demand is growing for solutions that can better manage expenses, cash flow and business operations.

Mayank Jain, Director of Credit and Lending at Amazon Pay India, said Amazon Pay has made credit accessible for millions of Indian customers, and is now doing the same for small traders. He said the Amazon Pay Kotak Business Credit Card extends this facility to 70 percent of Amazon Business's customer base, who are individual and small traders. Jain said the card has been designed keeping in mind the needs of these small traders and the need for transparent rewards and credit availability on purchases made on Amazon Business. He said the partnership with Kotak Mahindra Bank combines Amazon's reach across millions of businesses with Kotak's expertise in SME lending to create a better financial option for entrepreneurs across the country.

Frederick D'Souza, Head of the Credit Cards division at Kotak Mahindra Bank, said small businesses are the engine of the Indian economy. Despite limited resources and small staff, he said, they supply goods in every city, create employment and keep trade running. D'Souza said the entrepreneurship of these traders is truly commendable and their trust deserves the right tools.

D'Souza said the card will offer benefits suited to how these businesses actually operate, including an interest-free credit period to ease cash flow, no-cost EMI for large purchases, and cashback on existing spending to help grow the business. He said Amazon Pay is extending this facility to traders across the country who already trust the platform.