Why E-commerce Platforms Are Becoming Fintech Players
In India’s digital retail boom, e-commerce platforms are no longer just marketplaces — they are becoming financial ecosystems. From checkout financing to seller credit, embedded finance is now the invisible engine of growth. Companies like Amazon India, Flipkart, and Meesho are embedding Embedded Finance Trends directly into their user journeys, turning each transaction into a financial touchpoint.
According to the BCG-PhonePe India Fintech Report 2026, 47 % of new fintech users enter the ecosystem through an e-commerce platform. For millions of MSME sellers and consumers, e-commerce is their first experience with digital credit or UPI-based payments. This shift is blurring the traditional lines between “retail” and “fintech.”
But a key strategic question remains: should platforms build these financial capabilities in-house or partner with fintechs and banks? The answer lies in balancing control, compliance, and speed of innovation — three forces shaping the next generation of digital commerce.
Insight: In 2026, every e-commerce transaction is a financial interaction — the platform that manages credit wins the customer’s loyalty.The Built-from-Scratch Fintech Model: Control and Customization
Some platforms prefer building their own fintech stack — complete with wallets, credit engines, and risk scoring. Amazon Pay, Flipkart Pay Later, and Reliance’s Jio Financial Services represent this “build” approach, creating internal product lines that function like regulated fintechs. This strategy gives them full control over data, pricing, and user experience. Many also design proprietary Ecommerce Credit Solutions tailored to their sellers and shoppers.
Advantages of the built model:
- End-to-end ownership: Control over credit decisions, data analytics, and customer journey.
- Unified user experience: Seamless cross-service integration — loyalty points, EMI, and cashback under one login.
- Brand differentiation: Standalone financial products strengthen ecosystem stickiness.
Challenges:
- Requires regulatory licenses and ongoing compliance with RBI norms.
- Higher capital expenditure for technology, underwriting, and customer service teams.
- Slower speed to market compared to ready fintech partnerships.
In India, where compliance is tightening, the “built” route is typically feasible for large conglomerates or well-funded players. Even then, the success depends on how fast these firms can evolve their internal fintech DNA — not just tech talent but regulatory expertise and risk culture.
Tip: Building fintech in-house makes sense only when data synergy and user retention outweigh regulatory complexity.The Partnered Model: Speed, Compliance, and Shared Scale
Smaller or asset-light e-commerce players often take the partnered route — collaborating with NBFCs, banks, or fintech startups. They embed APIs from providers like Cashfree, Razorpay, or Simpl to launch instant checkout credit, wallet top-ups, or BNPL products. These Bnpl Partnerships allow faster go-to-market and shift regulatory responsibility to licensed entities.
Why partnerships work in India’s regulatory landscape:
- Speed to innovation: Pre-built lending and KYC modules reduce launch cycles from months to weeks.
- Lower compliance risk: Licensed partners manage data and loan disbursals under RBI’s digital lending norms.
- Mutual growth: Platforms drive user volume; fintechs contribute capital and regulatory clarity.
For instance, Meesho’s partnership with Indifi offers MSME sellers working capital loans within its app. Similarly, Shopify India collaborates with RazorpayX for merchant settlements and lending. These alliances deliver fintech benefits without the heavy regulatory lift, especially valuable for startups in Tier 2–3 markets.
In 2025, the RBI’s updated digital partnership guidelines formalized co-lending frameworks, encouraging compliant collaboration. This shift is creating a healthy B2B fintech marketplace — where tech, trust, and timing decide success.
Finding Balance: What Works for India’s E-commerce Fintech Future
Whether built or partnered, the end goal is the same: retain users by simplifying finance inside commerce. The most successful companies will use a hybrid model — own the core, partner for scale. Amazon India, for example, builds its credit decision engines but works with banks for lending capital. Similarly, Nykaa and BigBasket co-create fintech tools with third-party APIs while maintaining in-house loyalty ecosystems driven by Fintech Infrastructure India.
Key success factors going forward:
- Regulatory readiness: Platforms that proactively comply with RBI fintech norms will attract more users and partners.
- Data ethics: Transparent handling of purchase and credit data builds trust among both consumers and merchants.
- Localized finance: Tailoring lending and BNPL products for regional sellers ensures deeper adoption in non-metro markets.
- Open APIs: E-commerce will increasingly rely on interoperable APIs, enabling modular fintech services that plug in seamlessly.
According to the NASSCOM Fintech 2026 Forecast, embedded finance could account for 28 % of India’s digital payments by value. The question isn’t whether fintech and e-commerce will merge — it’s how sustainably they’ll scale together.
The future of Indian e-commerce fintech isn’t built or borrowed — it’s blended, collaborative, and compliant.
Frequently Asked Questions
1. Why are e-commerce companies investing in fintech?
To monetize transactions, offer credit to merchants and buyers, and enhance retention by embedding payments, lending, and insurance features.
2. What’s the difference between building and partnering in fintech?
Building means creating proprietary systems in-house, while partnering leverages existing fintech APIs or NBFCs for faster rollout.
3. Which Indian platforms follow the built model?
Amazon Pay, Flipkart Pay Later, and Jio Financial Services have built their own internal fintech stacks.
4. Which platforms use partnerships for fintech services?
Meesho, Shopify India, and Nykaa partner with fintechs like Razorpay and Indifi for payments and credit products.
5. What’s the best approach for 2026?
A hybrid model — own core capabilities but collaborate for regulated functions and scale.