Facebook-owned WhatsApp is all set to launch its UPI-based Pay service in India sometimes later this year. This was revealed by WhatsApp’s Global Head Will Cathcart. The upcoming payment service is aimed at WhatsApp’s over 300 million users – especially the small and medium businesses (SMBs). Also Read - WhatsApp payment service may be closer to launch in India
WhatsApp ran a test of its payments service with one million users in the country last year. But it got stuck in the digital payments framework guidelines. Now however the service is in the final stages. “To boost digital inclusion in India, we can launch the (Pay) service across the country later this year after meeting regulations,” Cathcart told the audience at an event. Also Read - Facebook plans to expand WhatsApp Payments to more countries this year
India’s digital payments industry will reportedly hit $1 trillion by 2023. According to a report, nearly half of MSME owners with annual business revenue between Rs 3 lakh and Rs 75 crore are likely to use WhatsApp Payments. Also Read - WhatsApp Payments out of beta with new bank partners, government directs setting up local office
Niti Aayog CEO Amitabh Kant said that Facebook-owned WhatsApp delayed in meeting India’s regulatory norms. This in turn affected the launch of its digital payments service. “We look forward to WhatsApp Pay in India once it fulfills all the regulatory requirements,” Kant said.
WhatsApp Pay opportunity
WhatsApp Pay would create a huge opportunity for the MSMEs to go digital. “Given the popularity and reach of WhatsApp in India, it is a given that it will make a strong dent on the payments ecosystem, and the incumbents therein,” Prabhu Ram, Head-Industry Intelligence Group, CyberMedia Research, told IANS.
Back in April, Facebook CEO Mark Zuckerberg announced that the company is actively working to launch WhatsApp Pay in India. The message is clear to the digital payments leader Paytm – Brace for landfall. “WhatsApp Pay has the potential to take Paytm head on, and race to the top of the payments market in India,” Ram added.
WhatsApp currently has over 300 million users in India. Facebook, on the other hand, has another 300 million users in the country. Once it starts peer-to-peer (P2P) UPI-based Pay service, the sheer numbers will take it beyond Paytm. The incumbent last revealed that it had over 230 million users.
“Digital wallet payment solutions are becoming more relevant for the Indian economy driven by mobile-centric Internet penetration. WhatsApp has the potential to leverage its existing user base and become the leading payments services,” noted Tarun Pathak, Associate Director at Counterpoint Research.
The company has told the Supreme Court that it would comply with the Reserve Bank of India’s (RBI) data localisation norms before launching the full payments service in the country.
The entry of WhatApp Pay will give a significantly more positive and viral impetus to India’s digital economy.
“WhatsApp Pay’s entry is a very pivotal moment in India’s e-payments history. It is almost akin to the launch of WeChat Pay that transformed payments in China. Imagine being able to make payments on platforms like BookMyShow via the WhatsApp integration,” Ram told IANS.