Amazon Pay and Kotak Mahindra Bank launched the Amazon Pay Kotak Business Credit Card on Thursday, targeting sole proprietors and small business owners registered on Amazon Business. According to reports from Business Standard, the card is designed to help businesses delay cash outflows, manage working capital, and spread larger purchases through No Cost EMI while earning rewards on routine business spending. The card offers up to 48 days of interest-free credit and three-month No Cost EMI on eligible purchases, though actual interest-free periods and EMI eligibility depend on applicable card terms. As per CIO Bulletin, this initiative is aligned with national efforts to support informal micro-business entrepreneurs to formalize their business activities in both urban and rural markets.
Prime members can earn 5% cashback on eligible purchases made on Amazon Business, as well as on eligible flight and hotel bookings. For non-Prime members, the cashback rate is 3% on these eligible transactions. The card also offers 2% cashback on bills and recharges through Amazon Pay and 1% cashback on all other spends. The cashback on Amazon Business and travel purchases is capped at 5% of the monthly credit limit. Additionally, the card provides offers on AWS credits for AI services, cloud computing and data storage, which could be particularly relevant for small businesses and startups using cloud infrastructure or AI-based services. According to CIO Bulletin, the card features GST-compliant invoices and provides users with digital dashboards, distinction between personal and business expenses, and automated maintenance of GST accounts.
The card comes with no joining fee but carries an annual fee of ₹499 plus taxes. According to Business Standard, the fee will be waived if the cardholder spends ₹3 lakh annually on eligible off-Amazon purchases. This is an important consideration for prospective users, as business owners should evaluate where they spend most of their money before applying. Someone whose spending is concentrated largely on Amazon Business may benefit from the cashback but may not necessarily meet the spending requirement for the annual-fee waiver. As per CIO Bulletin, these streamlined mechanisms help small operators establish verified digital transaction histories required for long-term institutional banking support.
The card will be available to registered Amazon Business users who are small business owners or sole proprietors. As reported by Business Standard, Amazon Pay stated that sole proprietors account for 70% of its small-business customer base on Amazon Business. Applications will be processed digitally with minimal documentation, and eligible applicants could receive a credit decision within minutes. According to CIO Bulletin, this move is an important financial advancement, strengthening working capital liquidity for small businesses in the country. The card's features are particularly designed for small businesses that face gaps between paying for goods and receiving money from customers, offering meaningful rewards on purchases made on Amazon Business, lower costs and access to credit.
According to Business Standard, India's MSME ecosystem has more than 94 million enterprises registered on the Udyam portal, while the sector contributes more than 30% of the country's GDP. Mayank Jain, Director - Credit & Lending, Amazon Pay India, emphasized that the card combines Amazon's reach with Kotak's SME lending expertise to create a compelling proposition for entrepreneurs across India. Frederick Dsouza, Head - Credit Cards, Kotak Mahindra Bank, highlighted that the card offers benefits around how small businesses operate, with features designed to ease cash flow and provide tools for enterprising entrepreneurs. The card essentially combines three features that matter in day-to-day business finances: rewards on spending, additional time to repay, and the ability to convert eligible larger purchases into EMIs. As per CIO Bulletin, executive leadership emphasized that tailoring financial products to real-world operating models unlocks growth potential across commercial hubs, with the partnership bringing essential cash flow management tools directly to trusted digital platforms.
