Run a biz? Amazon Pay-Kotak’s new card offers 5% cashback and 48-Day credit | Personal Finance

Amazon Pay and Kotak Mahindra Bank on Thursday launched the Amazon Pay Kotak Business Credit Card, targeted at sole proprietors and small business owners registered on Amazon Business.

 

For entrepreneurs, the key attraction is not just the cashback. 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.

 

5% cashback on Amazon Business purchases

 

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
• 1% cashback on all other spends
• Cashback on Amazon Business and travel purchases capped at 5% of the monthly credit limit
• Up to 48 days of interest-free credit
• Three-month No Cost EMI on eligible purchases

 

For a business owner who already purchases inventory, office supplies or other business requirements through Amazon Business, the cashback can potentially turn routine procurement into a source of rewards.

 

Up to 48 days to manage cash flow

 

The extended interest-free period could be particularly useful for small businesses that face a gap between paying for goods and receiving money from customers.

 

With up to 48 days of interest-free credit, eligible purchases can be made using the card and paid for later through the credit-card bill, potentially giving business owners more flexibility in managing their working capital.

 

The three-month No Cost EMI facility could also help when a business needs to make a relatively large eligible purchase but does not want the entire expense to hit its cash flow at once.

 

However, the actual interest-free period and EMI eligibility will depend on the applicable card and transaction terms.

 

Annual fee of ₹499, but waiver is possible

 

The card comes with no joining fee.

 

The annual fee is ₹499 plus taxes. However, the fee will be waived if the cardholder spends ₹3 lakh annually on eligible off-Amazon purchases.

 

This is an important point for prospective users. Business owners should look at 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.

 

AWS credits add another benefit

 

The card also offers offers on AWS credits for AI services, cloud computing and data storage.

 

This could be particularly relevant for small businesses and startups that use cloud infrastructure or AI-based services as part of their operations.

 

Who is eligible?

 

The card will be available to registered Amazon Business users who are small business owners or sole proprietors.

 

Amazon Pay said sole proprietors account for 70% of its small-business customer base on Amazon Business.

 

Applications will be processed digitally and require minimal documentation. Eligible applicants could receive a credit decision within minutes.

 

What does it mean for small business owners?

 

For a small entrepreneur, the new card essentially combines three features that can matter in day-to-day business finances: rewards on spending, additional time to repay and the ability to convert eligible larger purchases into EMIs.

 

The card could be especially useful for businesses that already rely heavily on Amazon Business for procurement. But the headline 5% cashback should not be viewed in isolation.

 

Prime membership is required for the higher cashback rate, the cashback is subject to a monthly credit-limit-linked cap, and the annual-fee waiver requires ₹3 lakh of eligible off-Amazon spending.

 

“Sole proprietors on Amazon Business make up 70% of its small business customer base. We built this card listening to what these small business owners need. Meaningful rewards on purchases made on Amazon business, lower costs and access to credit. By partnering with Kotak Mahindra Bank, we’re combining Amazon’s reach across millions of businesses with Kotak’s expertise in SME lending to create a compelling proposition for entrepreneurs across India,” said Mayank Jain, Director – Credit & Lending, Amazon Pay India.

 

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, according to the companies.

 

 “Small businesses are the engine of the Indian economy. They supply the goods, create the jobs and keep commerce moving in every town and city, often with modest teams and remarkable resourcefulness. What stands out is how enterprising they are. That confidence deserves the right tools. This card will offer benefits around how these businesses operate, with an interest-free credit period that eases cash flow, No Cost EMI for larger purchases, and cashback on the spending they are already doing to grow,” said Frederick Dsouza, Head – Credit Cards, Kotak Mahindra Bank.

 

Proposed Card Features & Benefits

• 5% cashback on eligible Amazon Business purchases and flight and hotel bookings for Prime members and 3% cashback for non-Prime members (capped at 5% of the monthly credit limit)
• 2% cashback on bills and recharges through Amazon Pay and 1% cashback on all other spends
• Up to 48 days’ interest-free credit period and three-month No Cost EMIs on eligible purchases
• Nil joining fee and annual fee of ₹499 plus taxes, waived on eligible annual spends of ₹3 lakh on Off-
• Amazon purchases
• Offers on AWS credits for AI services, cloud computing & data storage