NPCI approves WhatsApp Pay to penetrate Digital Payment Space in India

Recently, NPCI (National Payments Corporation of India) has granted Facebook’s WhatsApp to launch its Payment feature in India. Although, WhatsApp back in 2018 provoked its Pay feature offering 1 million users in India as part of beta testing. Unfortunately, the instant messaging app couldn’t roll out the function as a delay in the decision made by NPCI.

And finally, WhatsApp pay is available to Indian users. As a result, NPCI granting permission to the parent company Facebook and tieng the nods to penetrate WhatsApp into Digital Payment Space.

However, the delay in approval by NPCI was equitably difficult for WhatsApp Pay as the parent company Facebook had data compliance issues that need to be approached. NPCI couldn’t allow WhatsApp Pay until the Reserve Bank of India (RBI) and the Indian government were not confident.

Adding to that, the delay in approval had another primary reason for new vulnerabilities found in WhatsApp. Hence, from 2018 after making available the beta version, WhatsApp Pay is now availble after a lengthy duration approval backed by RBI.

Also, Facebook CEO Mark Zuckerberg earlier announced that the new WhatsApp Pay feature would also be available to other countries, including Brazil, Mexico, and Indonesia.

India Today on WhatsApp Pay Launch

“The National Payments Corporation of India (NPCI) has granted WhatsApp permission to operate its digital payment service in a phased manner,” Business Standard quoted a Reserve Bank of India official as saying. The NPCI approval came days after RBI’s nod.

In the first phase of the rollout, the WhatsApp Pay will be made available to over 10 million people through the messaging app. Post the successful launch, WhatsApp Pay is likely to become one of the largest mobile payments apps in India, considering the messaging app has over 450 million users in the country. 

WhatsApp Pay will have to face fierce competition in the Indian market as there are already gigantic payments app operating flawlessly. Some of them are PayTM, Google Pay, PhonePe, BHIM UPI, and Mobikwik, among which Google Pay is currently the most used payment app in India, followed by Paytm.

However, WhatsApp has a tremendous 450 million users in India that may also notably affect the business of these platforms dominating the digital payment market in India. Further, it would be interesting to see what feature will WhatsApp Pay offer to its users as all other platforms provide their users with other convenience services for free.


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