Home Business WhatsApp Pay Approved; Might Disrupt The Market

WhatsApp Pay Approved; Might Disrupt The Market

Whatsapp’s Unified Payments Interface (UPI) system, WhatsApp Pay, has been approved by the authorities in India as per the affidavit filed by RBI in the Supreme Court.

According to the affidavit, the NPCI is satisfied with the WhatsApp’s compliance with the regulator’s data storage rules, concerning which the company was facing the rejection.

“We would like to confirm that WhatsApp has satisfied the data localization requirements based on Cert-In auditor’s reports and we hereby are giving ICICI Bank (payment service provider bank for WhatsApp) the approval to go live,” the affidavit submitted by RBI to the court said.

According to the RBI rules, Payment data, information on payments or settlement transactions, customer data, among other information, has to be stored in India.

“NPCI has reviewed the ‘Post-Change Review Report III’ certified by the independent third-party CERT-In empanelled auditor of WhatsApp — Deloitte. We submit herewith that we derive comfort from the reports submitted by Deloitte with regards to WhatsApp’s full compliance in the remaining three points on data storage guidelines issued by our office and accordingly complies with all five points in lines with requirements advised through your (RBI) letter dated November 1, 2019,” part of the letter to the RBI said.

A WhatsApp spokesperson said, “We understand NPCI is satisfied with WhatsApp’s compliance with RBI’s payment guidelines on data localization. Our team has worked hard to meet these standards over the last year.”

According to a spokesperson, the company will be ready to provide payment services to users in India soon. WhatsApp’s pilot run began two years back by partnering with ICICI, while it awaited regulatory clearances to launch its UPI-based payments for its users in India, one of the company’s biggest markets.

WhatsApp currently has over 400 million users in India, which is twice the size of Paytm’s current user base. Because of the current pandemic conditions, the usage of UPI-based transactions has increased intensively. In July 2020, over 1.49 billion UPI transactions were carried out. WhatsApp payments services could prove beneficial for the company.

Google Pay currently dominates the UPI-based payments market with over 42 per cent share, followed by Flipkart’s Phone Pe with 35 per cent market share.

WhatsApp being India’s most popular app with millions of daily active users, could disrupt the market for Paytm and Phone Pe.

How does WhatsApp pay work?

WhatsApp pay works the same as any other digital payment system.
1. Users can send money directly to the contacts.
2. Users could also enter the UPI ID and send money.
3. Can send money to people who are not in their contact list, through QR code.

How can I use WhatsApp pay in India?

1. Go to the Payments menu
2. Click on Add New Payment Method
3. Select your bank
4. Tap Verify via SMS to authenticate your bank account
5. Tap Allow to let WhatsApp verify your number and send a text to authenticate your account.

Is WhatsApp pay safe?

The data is stored securely, and sensitive user data such as the last 6-digits of a debit card and UPI PIN is not stored at all. Additionally, the service provider for WhatsApp Pay is Facebook, and their payment structure is safe.


Read Also: How Many Competitors Did Facebook End Up Copying? Mark Zuckerberg Emails Outline Plan To Neutralize Competitors

Shivani Mittalhttps://www.the-electronics.com/
Shivani Mittal pens down all the prominent business decisions and news. She is a passionate reader and on any other off day, she finds herself immersed in adventurous activities like Trekking and Rock climbing.

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