WhatsApp has recently gained clearance from the National Payments Corporation of India (NPCI) to expand its WhatsApp Pay service to its entire user base across India. This development comes after the NPCI removed the initial restriction that limited the service to only 100 million Unified Payments Interface (UPI) users. This move positions WhatsApp Pay to potentially reshape the digital payments landscape in India.
Understanding WhatsApp Pay
WhatsApp Pay is a UPI-based digital payment feature embedded within Meta’s widely-used instant messaging app. Launched in India during February 2018, it allows users to seamlessly send and receive money directly through the app. The service officially received approval from the NPCI on February 7, 2020, enabling a phased expansion.
Setting Up WhatsApp Pay
To activate WhatsApp Pay, users can either select the “Payments” option from the three-dot menu at the top right corner of the app or choose the “Payment” option from the share file icon in chat windows. The setup process involves the following steps:
- Click on “Get Started,” proceed with “Continue,” and select your bank from the list.
- Ensure the phone number linked to your bank account is active on your device, either through SIM or eSIM.
- After selecting the bank account, tap “Add” to finalize the account verification.
Utilizing WhatsApp Pay
Using WhatsApp Pay is straightforward:
- Users can send money by tapping the share file icon during a chat and selecting ‘Payment.’
- There’s also a ‘Payment’ shortcut beside the share file icon for quick access.
- For contacts with WhatsApp Pay activated, the transaction interface displays “Pay” or “Request” options.
- For those without WhatsApp Pay, users can send an invite or perform transactions using the recipient’s UPI ID.
- All transaction history and account details are accessible in the Payments section of the app.
Competitive Landscape
WhatsApp Pay faces stiff competition from established players like Google Pay, which holds a 37% market share, and PhonePe, which dominates with a 48% market share. Despite this, WhatsApp’s extensive user base of over 500 million in India provides a solid foundation for its growth in the digital payment sector.
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