The world’s most popular and trusted messaging service WhatsApp will now be going to make a major update.
According to rumors, starting from Nov 6, Friday WhatsApp users will be able to send and receive money as long as they have a bank account and using their debit card in India.
India is a nation with 400 million WhatsApp users.
WhatsApp said in its blog post that they are working with five major banks in India: HDFC Bank, Axis Bank, ICICI Bank, State Bank of India (SBI) and also with Jio payments bank.
This new feature will be available in Google Play Store for Android users and Apple’s iPhone App Store too.
It was designed using the United Payments Interface (UPI), an infrastructure created by the country’s top payments processor, the National Payments Corporation of India (NPCI).
United Payments Interface (UPI) is one of the most dominant and popular method used for sending and receiving money through different bank accounts as well as other real-time digital payments.
UPI and other digital wallets are very useful during times when people don’t carry their debit cards or credit cards.
UPI share has been projected to double in the market, in 2019 it was estimated at 64.8 billion USD, and in 2023 it is estimated to be 135.2 billion USD.
According to an industry report, it came to be claimed that for other mobile wallets a person needs to be using the same digital wallet for money transfer as well as there are some KYC needs.
But the same thing doesn’t exist in the case of UPI, in United Payments Interface merchants as well as non-merchant users can use different UPI Platforms for money transfer as well as there are no KYC requirements in UPI.
All major payment names in India use the UPI framework, which processed more than 2.07 billion transactions in October, up from around 1.80 billion a month earlier. It is supported by nearly 190 lenders in the country.
And this India’s top payment processor known as United Payments Interface has been appreciated by Mark Zuckerberg and gave its approval to one of the Facebook-owned social media and messaging service WhatsApp.
CEO of Facebook Mark Zuckerberg said:
With UPI, India has created something truly special. It’s opening up a world of opportunities for micro and small businesses that are the backbone of the Indian economy.
NCPI also said:
“WhatsApp can expand its UPI user base in a graded manner starting with a maximum registered user base of twenty (20) million in UPI,”
The payments feature is available in 10 Indian regional language versions of WhatsApp, Facebook CEO Mark Zuckerberg said in a video statement.
WhatsApp will now be going to face competition from different UPI as well as other digital payment platforms in India like GooglePay, BHIM, PhonePe, PayTM.
This decision ends with a two-year wait for Whatsapp pay which has been operating pilot operations for Indian users.
WhatsApp has also made its partnership with the chairman of Reliance Network, Mr. Mukesh Ambani, and with this partnership with Jio payments bank, Mark Zuckerberg will going to use its UPI system on WhatsApp and there is a 5.7 billion USD investment deal between both of them.
The launch of WhatsApp pay had gone through many barriers, the cause of the first delay was due to data localization norms introduced by the Reserve Bank of India (RBI).
WhatsApp Pay also faced a challenge in the Supreme Court of India earlier this year, when a plea was filed regarding a pilot payment program being run by a company.
Info sources: bloomberg.com cnbc.com