Here’s some good news for Amazon Pay customers who use UPI (Unified Payment Interface) or Amazon Pay Balance, our pre-paid wallet. The Reserve Bank of India (RBI)—which governs UPI—recently released guidelines that enable the interoperability of Prepaid Payment Instruments (PPI) using the UPI ecosystem. National Payments Corporation of India (NPCI) further qualified these guidelines via its operational framework to facilitate seamless user experience.

UPI: A game changer

Data shared by NPCI shows that UPI continues to grow exponentially. Total transaction value rose by 14% in the month of March 2023. To further enhance customer experience and build on interoperability, the RBI is allowing prepaid instruments like digital wallets to become part of the UPI payment ecosystem. However, a recent circular issued by NPCI (on the recommended interchange fee) may have caused some confusion among Amazon Pay users.

Where interchange fees apply

Remember, NPCI has also clarified that there are no charges for ‘bank account-to-bank account’-based UPI payments. Interchange fees are only applicable to merchant acquirers (banks that enable a merchant to accept credit card payments) that receive payments via QR codes and not to the customer. However, smaller offline merchants and shopkeepers are unlikely to be impacted as the fee is applicable only on payments of over ₹2000 for them. Additionally, you can continue to send money for free to your friends and family as transactions between a bank account and a prepaid wallet do not attract interchange fee.

Amazon Pay UPI benefits

Does this affect Amazon Pay users?

Nothing changes, really. You can continue to make free UPI-based transactions all day, every day with Amazon Pay UPI in a fast, easy, and secure way. You can register for Amazon Pay UPI for free through and easily create your UPI ID (for instance phonenumber@apl or phonenumber@amamzonpay) by following a few simple steps. You can also link your savings bank account or Amazon Pay Balance account and make payments by scanning any UPI QR code at your neighbourhood kirana or mall. You can also make payments for your purchases on the app or any other third-party apps/websites that accept UPI payments. And if you use the Amazon Pay Balance wallet, there’s a lot more to cheer about. If you prefer to load your online wallet to make payments instead of linking your bank account, the new interoperability rule makes it easier for you to do so from any bank account via UPI or debit cards. 

Making digital payments seamless across Bharat

Mahendra Nerurkar, CEO & VP Amazon Pay, is excited about the flexibility this development brings. “Our mission is to make digital payments trusted, convenient and affordable for our customers across Bharat. The interoperability of digital wallets and UPI is a game changer for customers," says Nerurkar.

It allows our customers to experience more flexible payment options at zero cost. We will continue to partner with industry bodies & organisations such as NPCI to further build innovative payment solutions to facilitate a holistic experience, and drive financial inclusion in the country.
Mahendra Nerurkar, CEO & VP, Amazon Pay

UPI has been at the forefront of a digital payments revolution in India and has quickly become the go-to payment method for individuals who prefer free, quick, secure, and seamless payments. Amazon Pay is a one-stop digital solution that facilitates a fast, free, ubiquitous, intuitive and failure free payment experience.