WhatsApp has been given a green flag to introduce its payment service in India on a large scale. Earlier in 2018, the testing of this service took place with 1 million users but now it is ready to expand and cater to all.
WhatsApp To Introduce Payment Services In India
Facebook owned WhatsApp has revealed that the payment services will be rolled out in ten Indian regional languages in its latest version of WhatsApp app on iOS and Android. Recently NPCI, National Payments Corporation of India which is behind the operations of the UPI payments infrastructure in India approved WhatsApp to roll out UPI payments in India.
Like any other payment services available today, including Google and Samsung even WhatsApp has built its payment service on UPI, which is built by large banks in India. NPCI has given its approval and has said that the payment services will be rolled out in a graded manner to its 400 million users in India. But in the beginning this service will only be available for 20 million users and will work with multiple banking partners. WhatsApp Payment Services is said to be working with ICICI Bank, Axis Bank, HDFC Bank, Jio Payments Bank and State Bank of India, which are the five leading banks in India.
The mobile payments market is dominated by Google and Walmart currently in India which is almost 80% of the UPI market share. In late 2016, Delhi took a bold move in invalidating more than 85% of paper cash circulation which led to UPI emerging as the most popular digital payments method in India.
With the introduction of UPI major firms like Paytm and Softbank saw a downfall in its users. Both these firms took years to work on its payment wallet system. Unlike UPI apps, these wallets are not interoperable and requires payments only from its services and also has a small fee which it takes from its customers.
Mark Zuckerberg in a video said “With UPI, India has created something truly special and is opening up a world of opportunities for micro and small businesses that are the backbone of the Indian economy. India is the first country to do anything like this. I’m glad we were able to support this effort and work together to help achieve a more digital India. I want to thank all our partners who’ve made this possible. When people can access financial tools, they’re more empowered to support themselves and others, or start a business. Long term, we need more innovation that gives people control over their money, and making payments easier is a small step that can really help,”
Unlike other apps, WhatsApp payment services will see a drastic growth as most of the users are already using the app for its messaging services.