The much awaited WhatsApp feature is expected to turn out quite fruitful in the growing digital payment’s industry of India. The industry is at $200mn and is expected to reach $1Tn by 2023.
The payment service of largely used messaging application WhatsApp is reportedly being tested by 1 Million users, the company announced. Officials from the company stated that the response of WhatsApp Pay is very positive and sending money has become convenient and secure as sending messages. In order to support India’s digital economy, the company is looking to expand this feature and working closely with the Indian Government. It is also in talks with NPCI and multiple banks and payment service providers.
Prior to this, WhatsApp had taken permissions from the NPCI in order to tie-up with banks to simplify financial transactions via the Unified Payments Interface (UPI). The company is looking forward to make transactions as easy and seamless as possible. The feedback expected is quite positive considering the reach of the application in the country. The application has a staggering 1.5bn active monthly users and around 200 million users in India. Although the feature seems quite exciting, there still are concerns regarding the security aspect of WhatsApp Pay.
Vijay Shekhar Sharma, PayTM founder had earlier alleged that WhatsApp’s UPI payment platform has many security risks for its users and it doesn’t completely meet the guidelines. RBI made it mandatory to all payment system operators to make sure that the payment data is stored only within the country which gives the companies six months to meet the terms with it. The Ministry of Electronics and IT asked NPCI to check if WhatsApp Pay obeys to these RBI guidelines and data security. NPCI has to make sure that all the agreements are in check before the feature of the messaging app takes off.
The Facebook owned company’s entry into the e-payments pie will be seen in the next few months itself. WhatsApp pay doesn’t have an official launch date yet but will be soon opened for general public use, reports stated.