India becomes the first country to experience the new “WhatsApp Payments” service. National Payments Corp. of India (NPCI) approves the messaging platform from the data localization requirements. ICICI Bank, who is behind WhatsApp’s payment service as a provider, now hold the decision on when the service may start. WhatsApp will soon be ready to challenge the Unified Payments Interface (UPI) markets.
How did WhatsApp payments first start?
WhatsApp easily tops the list of applications with the most engagement in India. According to India Today, Whatsapp’s user base is estimated to exceed 300 million users in India. Whatsapp’s easy to access and easy to use is the main reason the application is now simply a part of most India citizens’ everyday life. Moreover, its end-to-end encryption claim offers safety reassurance to the users. The additional payment feature is like a cherry on top to further ease and convenient users.
WhatsApp as swipe money: soon to be realized
Last Monday, Mint reports the National Payments Corp. of India (NPCI) has given the green light to Reserve Bank of India (RBI) in regards to the data localization requirements for Whatsapp payments. RBI further files an affidavit and expressed their contentment on WhatsApp’s compliance. The Bank now affirms WhatsApp to proceed on the Unified Payments Interface (UPI) platform, though the Facebook-owned firm will still need ICICI Bank’s approval.
WhatsApp payments currently under trial, will soon challenge major companies
As a trial, around 1 million users are currently provided with the WhatsApp Payments since February. This new service is under Reliance JioMart’s small business network surveillance. Similar e-payment service providers, such as Paytm, will need to stay alert. The current market leader, Google Play, is not an exemption from the competition.
According to Mint’s report on July 30, Google Pay leads the UPI transactions market by owning 42% of the share. PhonePe’s FlipKart follows with a 35% share. Other UPI namely Paytm, Amazon Play, Bharat Pe, and others saturate the remaining 23%.
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