comscore Paytm raises concerns around WhatsApp Payments and its adherence to mandatory NPCI guidelines
News

Paytm raises concerns around WhatsApp Payments and its adherence to mandatory NPCI guidelines

In a conversation with BGR India, Deepak Abbot, Senior Vice President, Paytm spelled out the concerns Paytm has with the implementation of the Payments feature within WhatsApp.

  • Updated: February 16, 2018 7:00 PM IST
whatsapp payments

Update: NPCI says it has been working to provide digital payments in the country with globally recognized products BHIM-UPI. “NPCI has given its consent to roll out WhatsApp BHIM UPI beta launch with limited user base of 1 million and low per transaction limit. Four banks will join the multi-bank BHIM UPI model in phases (in the coming weeks) and full feature product shall be released after the beta test is successful. Multi-bank model offer advantages such as transaction load distribution between banks and helps to integrate popular apps easily with BHIM UPI,” the apex organization overlooking payments said in a statement. Also Read - Best online gaming platforms to play multiple games: Paytm First Games, PlayerzPot and more

Also Read - Internet down: Zomato, Paytm, Disney+ Hotstar, Amazon, Myntra, many other global services suffered massive outage

“We welcome this statement by NPCI. It addresses the concerns of interoperability violation that we had raised. It also clarifies that the trial has been restricted to 1 million users, though we feel that a product with the stated violations could have been tried out amongst a much smaller base. We are still concerned that this statement is silent on the critical issue of safety/security of a financial transaction through UPI, where consumers need to mandatorily sign-in with username and password. This violation is fundamental and very serious. WhatsApp must implement login & password like all other BHIM UPI apps. This statement is also silent on other issues such as the requirement to send SMS notifications for every UPI transaction. We hope that future rollout will be fully compliant with all the guidelines. We wait to hear NPCI views on some of these missing aspects,” a spokesperson for Paytm said in an emailed statement. Also Read - Zomato IPO: How to invest via bank, Zerodha, and Paytm Money

Paytm founder Vijay Shekhar Sharma s tweet referring to WhatsApp Payments and its implementation of UPI got widespread attention. I brushed it as typical competition at play. It was my assumption, and initial reaction, from limited understanding of the situation. And quite a few tweets and posts on social media seemed to agree with that point of view. While I use Paytm, and WhatsApp Payments, given a choice I would prefer the BHIM app for money transfers and payments since it takes away the need of logging into internet banking and does what needs to be done in a couple of taps.

https://twitter.com/vijayshekhar/status/963610952708116480

Paytm s concerns

I spoke to Deepak Abbot, Senior Vice President at Paytm to understand what exactly was Paytm s concern around WhatsApp Payments. And over the course of our conversation, I did gather that primarily, there were quite a few points that Paytm was trying to address. And none of them were associated with competition. In fact, in an earlier conversation with BGR India around the initial roll-out of the WhatsApp Payments feature, he said Paytm welcomed competition.

Among the primary concerns raised by Paytm is the mandatory requirement by NPCI that requires any UPI-enabled app to implement password protection features. Abbot believes it s a good feature to have, and while all UPI-compatible apps (including Paytm) have implemented this feature, WhatsApp seems to have worked around this mandatory security requirement. He adds that the immediate user experience seems to have taken a higher priority than user security.

Besides initial password protection at the application level, NPCI also requires the app to allow a user to logout at any time. Again that seems to be missing from the app. Abbot identifies this as a potential security hole. He believes it s critical to protect financial details.

Emphasizing the role played by the Government of India and MeitY, he added that among the core objectives of implementing UPI and BHIM as a platform interface was to enable any user on the system to be able to digitally transact with any other user, irrespective of the bank, app or service they use. Unfortunately, a WhatsApp user cannot send money to a non-WhatsApp user, which is going against the basic NPCI guidelines.

He adds that while a WhatsApp user is allotted a UPI ID, it s a convoluted structure that seems to highlight a focus on usability rather than fulfilling requirements of NPCI, which has been followed by companies such as Paytm. Even immediate competition such as PhonePe, Tez by Google and the BHIM app itself follow all these essential mandatory guidelines.

Finally, NPCI also requires UPI-enabled apps to give their users the ability to send money from their app to bank accounts. Here again, WhatsApp doesn t seem to allow users to send money to a bank account. Another concern raised by Paytm is the lack of support for scanning Bharat QR code for transacting with merchants or transfer money to other users. Adding to the list is the ability to request money from another UPI user, which is absent in WhatsApp Payments.

Lastly, Abbot added that as per a circular by MeitY, the name was changed from UPI to BHIM, and all apps were to give visibility to BHIM, which seems to have been violated in the case of WhatsApp Payments.

BGR India has reached out to Paytm, WhatsApp and NPCI to get more clarity on the matter and has sought a response on these concerns. We are awaiting their replies and will update the story once we hear from them.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel. Also follow us on  Facebook Messenger for latest updates.
  • Published Date: February 15, 2018 2:19 PM IST
  • Updated Date: February 16, 2018 7:00 PM IST



new arrivals in india

Tecno Pova 2
Tecno Pova 2

10,999

Infinix Smart 5A
Infinix Smart 5A

6,499

Micromax In 2b
Micromax In 2b

8,999

Vivo Y72 5G
Vivo Y72 5G

20,990

Tecno Camon 17
Tecno Camon 17

12,999

Tecno Camon 17 Pro
Tecno Camon 17 Pro

16,999

Realme C11 2021
Realme C11 2021

6,999

Oppo Reno6 Pro 5G
Oppo Reno6 Pro 5G

39,990

Oppo Reno6 5G
Oppo Reno6 5G

29,990

Samsung Galaxy M21 2021
Samsung Galaxy M21 2021

12,499

OnePlus Nord 2
OnePlus Nord 2

27,999

Poco F3 GT
Poco F3 GT

27,999

Samsung Galaxy A22 5G
Samsung Galaxy A22 5G

19,999

Xiaomi Redmi Note 10T 5G
Xiaomi Redmi Note 10T 5G

13,999

Samsung Galaxy F22
Samsung Galaxy F22

12,499

Xiaomi Mi 11 Lite
Xiaomi Mi 11 Lite

21,999

Infinix Note 10 Pro
Infinix Note 10 Pro

16,999

Infinix Note 10
Infinix Note 10

10,999

Vivo Y73
Vivo Y73

20,990

OnePlus Nord CE 5G
OnePlus Nord CE 5G

22,999

iQOO Z3
iQOO Z3

19,990

Realme C25s
Realme C25s

9,999

Poco M3 Pro 5G
Poco M3 Pro 5G

13,999

Realme X7 Max 5G
Realme X7 Max 5G

26,999

Oppo F19
Oppo F19

18,990

Motorola Moto G40 Fusion
Motorola Moto G40 Fusion

13,999

POCO M2 Reloaded
POCO M2 Reloaded

9,499

OPPO A74 5G
OPPO A74 5G

17,990

Oppo A53s 5G
Oppo A53s 5G

14,990

Vivo V21 5G
Vivo V21 5G

29,990

Realme C25
Realme C25

9,499

Realme C21
Realme C21

7,999

Realme C20
Realme C20

6,799

Motorola Moto G60
Motorola Moto G60

17,999

iQOO 7
iQOO 7

31,990

Samsung Galaxy M42 5G
Samsung Galaxy M42 5G

21,999

Xiaomi Mi 11 Ultra
Xiaomi Mi 11 Ultra

69,999

Xiaomi Mi 11X Pro 5G
Xiaomi Mi 11X Pro 5G

39,999

Xiaomi Mi 11X
Xiaomi Mi 11X

29,999

Realme 8 5G
Realme 8 5G

13,999

Samsung Galaxy F02s
Samsung Galaxy F02s

8,999

Samsung Galaxy F12
Samsung Galaxy F12

10,999

POCO X3 Pro
POCO X3 Pro

18,999

Realme 8 Pro
Realme 8 Pro

17,999

Realme 8
Realme 8

14,999

Vivo X60 Pro Plus
Vivo X60 Pro Plus

69,990

Vivo X60 Pro
Vivo X60 Pro

49,990

Vivo X60
Vivo X60

37,990

OnePlus 9 Pro 5G
OnePlus 9 Pro 5G

64,999

OnePlus 9R 5G
OnePlus 9R 5G

39,999

OnePlus 9 5G
OnePlus 9 5G

49,999

Samsung Galaxy A72
Samsung Galaxy A72

34,999

Samsung Galaxy A52
Samsung Galaxy A52

26,499

Micromax In 1
Micromax In 1

10,499

Asus ROG Phone 5
Asus ROG Phone 5

49,999

Samsung Galaxy M12
Samsung Galaxy M12

10,999

Motorola Moto G30
Motorola Moto G30

10,999

Motorola Moto G10 Power
Motorola Moto G10 Power

9,999

Oppo F19 Pro Plus 5G
Oppo F19 Pro Plus 5G

25,990

Oppo F19 Pro
Oppo F19 Pro

21,490

Xiaomi Redmi Note 10 Pro Max
Xiaomi Redmi Note 10 Pro Max

18,999

Xiaomi Redmi Note 10 Pro
Xiaomi Redmi Note 10 Pro

15,999

Xiaomi Redmi Note 10
Xiaomi Redmi Note 10

11,999

Realme Narzo 30A
Realme Narzo 30A

8,999

Realme Narzo 30 Pro
Realme Narzo 30 Pro

16,999

Infinix Smart 5
Infinix Smart 5

7,199

Samsung Galaxy F62
Samsung Galaxy F62

23,999

Samsung Galaxy A12
Samsung Galaxy A12

12,999

Nokia 5.4
Nokia 5.4

13,999

Nokia 3.4
Nokia 3.4

11,999

Realme X7 Pro 5G
Realme X7 Pro 5G

29,999

Realme X7
Realme X7

19,999

Vivo Y31
Vivo Y31

16,490

Oppo Reno5 Pro 5G
Oppo Reno5 Pro 5G

35,990

Samsung Galaxy S21 Ultra 5G
Samsung Galaxy S21 Ultra 5G

1,05,999

Samsung Galaxy S21 Plus 5G
Samsung Galaxy S21 Plus 5G

81,999

Samsung Galaxy S21 5G
Samsung Galaxy S21 5G

69,999

Vivo Y12s
Vivo Y12s

9,990

Vivo Y51A
Vivo Y51A

17,990

Samsung Galaxy M02s
Samsung Galaxy M02s

8,999

Xiaomi Mi 10i
Xiaomi Mi 10i

21,999

Oppo A15s
Oppo A15s

11,490

Tecno Spark 6 Go
Tecno Spark 6 Go

8,499

Vivo V20 2021
Vivo V20 2021

24,990

Vivo Y20A
Vivo Y20A

11,490

Xiaomi Redmi 9 Power
Xiaomi Redmi 9 Power

11,999

Motorola Moto G9 Power
Motorola Moto G9 Power

11,999

Motorola Moto G 5G
Motorola Moto G 5G

20,999

Vivo V20 Pro
Vivo V20 Pro

29,990

Xiaomi Mi 10T
Xiaomi Mi 10T

35,999

Xiaomi Redmi 9i
Xiaomi Redmi 9i

8,299

Xiaomi Mi 10T Pro
Xiaomi Mi 10T Pro

39,999

Infinix Hot 10
Infinix Hot 10

9,999

Vivo V20 SE
Vivo V20 SE

20,990

Vivo V20
Vivo V20

24,990

Micromax In 1b
Micromax In 1b

6,999

Best Sellers