WhatsApp Payments Coming to India Later This Year, Global Head Says
WhatsApp Payments Coming to India Later This Year
Facebook-owned WhatsApp is set to launch its peer-to-peer, UPI-based pay service, especially Small and Medium Business (SMB) – sometime this year, Cathcart announced with Global Head here on Thursday.
WhatsApp launched an experimental drive to run payment services with over one million users in the country last year, which has stuck to the digital payment framework guidelines but is now in its final stages.
“To increase digital inclusion in India, we can launch the (Pay) service in the country later this year after meeting the regulations,” Cathcart told an audience at the event.
The country’s digital payment industry is projected to hit $ 1 trillion by 2023.
According to a report by Omidyar Network and Boston Consulting Group (BCG), about half of MSME owners have annual business revenue of Rs. 3 lakhs and If it is fully leaked, WhatsApp will use the payment of Rs 75 crore.
Speaking on the occasion, Amitabh Kant, CEO of Niti Aayog, delayed meeting India’s regulatory criteria for launching Facebook-owned WhatsApp digital payment service.
“Once we meet all regulatory requirements, look forward to WhatsApp Pay in India,” Kant said.
WhatsApp payments will create a huge opportunity for MSMEs to go digital.
“In terms of the popularity and reach of Whatsapp in India, it will create a strong conflict between the WhatsApp payment ecosystem and its promoters,” Prabhu Ram, Head Industrial Intelligence Research, CyberMedia Research, told IANS
Facebook CEO Mark Zuckerberg announced in April that the company was actively working to launch WhatsApp Lane in India.
The message to Paytm, the country’s digital payment leader, is clear: a brace for landfall.
“WhatsApp Payments is likely to compete with Paytm head-on in India and the top of the payment market in India,” added Ram.
Currently, WhatsApp has 300 million users in India (over 300 million users on Facebook) and after launching a peer-to-peer (P2P) UPI based pay service, the sheer number will surpass Paytm which eventually reaches 230 million users.
Tarun Pathak, associate director of Counterpoint Research, noted, “Digital wallet payment solutions are becoming more relevant for the Indian economy driven by mobile-centric Internet penetration.
The company has told the Supreme Court that it will comply with the (RBI) data localization rules before launching a full payment service in the country.
The gateway to WhatsApp Pay will provide significantly more positive and viral improvements to India’s digital economy.
“WhatsApp pay’s entry is a very important moment in the history of e-payment in India. It is almost like launching WeChat Pay that payments are converted to China. Be able to pay on platforms like BookMyshow through WhatsApp integration.” IANS.