WhatsApp Delivers Good News to Indian Fans

WhatsApp  has  been  a  cornerstone  of  Indian  digital  communication  for  a  few  years  now. Nowadays it has become more than just a messenger and is trusted by hundreds of millions of desi users.

As the Facebook-owned platform is expanding vertically, it has officially entered the Indian payments’ system a week ago when the company finally got its approval from the principal direct payment operator –the National Payments Corporation of India (NPCI).

After  more  than  2  years  of  background  checks  and  regulatory  requirements,  the  NPCI –controlled by the Reserve Bank of India and the Indian Banks’ Association –has given the all clear to WhatsApp Pay to become the newest provider of peer-to-peer and extended digital payment services.

WhatsApp Pay will essentially use the Unified Payments Interface (UPI). Introduced in 2016, UPI is a champion for digital inclusion, a unique Indian breakthrough which gave a strong push to the national fintech ecosystem and has been posting impressive numbers ever since.

In an announcement on its company blog WhatsApp shares its satisfaction and reveals the simple  steps  it  takes  to  send  money  to friends or  make  purchases.  Already  available  in 10 Indian  languages,  the  latest  version  reveals  an  ambition  to  promote  social  gains  such  as “increasing rural participation in the digital economy” and ease of access to cheap financial operations nationwide.

It  is  welcome  news  for  many  in  the  young  and  dynamic  desi  society  who  increasingly  use their mobiles for daily tasks and entertainment, from retail to online casinos. Just in time for Diwali, as social card games with faraway family members, casual sports bets or a quick visit to  the best  casino site will be just a click away with WhatsApp’s integrated chat and pay options.

India -the Favourite New Battleground of Digital Titans
The  growing  importance  of  digital  payments  is  not  a  surprise  for  the  Indian  internet economy which has proven to be “mobile first”. Affordable smartphones,  cheap  data  and increasingly lower transaction costs have improved overall user experience and stimulated numerous new IT startups and fintech business models.

Considering the sheer size of the Indian mobile market, Facebook has been looking forward to getting a foot in the door and measuring up to the other big players in the sector. While the segment is currently still dominated by Google Pay and Walmart’s PhonePe, the recent entries  of  Amazon  Pay  and  WhatsApp  Pay  will definitely  split  the  market  more  evenly  and give more alternatives to users.

WhatsApp definitely does not come unprepared to the “fight”. As Google relies on its ubiquitous  presence  and  PhonePe  isfully  integrated  with  Flipkart,  the  original  messaging service has grown into much more than that –it boasts 400 million users in India(as much as its parent company, Facebook) which is more than anywhere else globally.

Now  that  WhatsApp  is  targeting  local  retail  and  everyday  payments,  its USD 5.7  billion investment in Jio acquires a different significance, as Mukesh Ambani’s telecom and tech giant  will  ease  its  entry  in  e-commerce  and  banking  (the  Jio  Payments  Bank  is  quoted  as  a payment partner).

A Temporary Harness
In fact, the NPCI and RBI are aware of WhatsApp Pay’s potential to disrupt the market in record  times.  So  much  so  that  they  have  put some reins on  their  thoroughbred, for  now  at least.

As a new addition to UPI’s current customer base of approximately 400 million, WhatsApp Pay was allowed to go live “in a graded manner”, starting with a maximum  of  20  millionusers. Although NPCI’s intent is to maintain a 30% cap in payment volumes to all Third Party App Providers (TPAPs), this would still mean 120 million for WhatsApp at a later stage. But with  an  experienced  local  partner  such  as  Jio  and  a  loyal  customer  base  such  as  that  of Facebook and WhatsApp, their growth would be difficult to contain.