WhatsApp, owned by Facebook, has received approval from the National Payments Corporation of India (NPCI) to initiate Unified Payments Interface (UPI) payments within the country.
Current User Cap Limitation
However, WhatsApp’s UPI payments platform is restricted to onboarding only 20 million users, a stark contrast to its massive user base of over 400 million in India.
Request for User Cap Expansion
In light of this limitation, WhatsApp has appealed to the NPCI to increase the user cap restriction on its payments platform. A source familiar with the matter revealed that WhatsApp has been persistently urging the NPCI to consider raising the cap, with the request currently under review.
Competition in UPI Payments
WhatsApp aims to rival existing leaders in UPI payments like PhonePe and Google Pay. To attract users, the messaging app recently announced a promotional offer, providing a cashback of ₹51 for five transactions, enabling users to earn up to ₹255.
Phased Approach to Increasing Cap
NPCI is reportedly contemplating a phased approach to increasing the user cap on WhatsApp payments. This cautious strategy is driven by the potential influx of high transaction volumes associated with the removal of the cap entirely.
WhatsApp’s Payment Initiatives
In its pursuit of expanding its payment services in India, WhatsApp has introduced various initiatives. It has commenced testing a payment shortcut, allowing users to send money directly from the chat box. This feature streamlines the payment process by placing the payments button adjacent to the attachments button within the chat interface, making it more accessible to users.
Overall, WhatsApp’s endeavor to enhance its payment capabilities in India reflects its commitment to tapping into the burgeoning digital payments market in the country. However, its aspirations are tempered by regulatory constraints and the need for cautious expansion to ensure seamless user experience and regulatory compliance.
