After Demonetisation digital payments took a hike in its promotion changed the way Indians pay for things and now the social media giant Facebook is all set to launch WhatsApp Pay in the country as early as next week. According to the Reports, the much-awaited launch of WhatsApp’s payment services which boast 200 Mn users in India will heat up the digital payments spaces in India which are dominated by players like Paytm, MobiKwik and Google Tez.
WhatsApp Pay will partner with banks like HDFC Bank, ICICI Bank, and Axis Bank to process the transfers, and the State Bank of India (SBI) will join once it has the necessary systems in place. Reports Livemint.
Facebook was eyeing a full rollout with four partners but decided to go ahead with just three as competitors in the space were racing ahead.
WhatsApp Pay opened to rave reviews and the potential impact of its established user base has drawn comparisons with the way WeChat reshaped payments in China when it expanded beyond messaging.
“WhatsApp is likely to change the digital payments scenario by cannibalizing other wallets’ users and adding new converts,” said Satish Meena, an analyst at Forrester Inc. “Its base of 200 million users, daily active users that’s about 20 times higher than Paytm’s, and the fact that Indian user.
WhatsApp has become India’s most popular app as hundreds of millions get their first smartphone, using the service to exchange greetings, tell jokes and share videos and gossip. Its enormous reach provides a ready-made user base that doesn’t require spending money to acquire new customers, a massive advantage over rivals.
Digital Payments Prepares For Game of Thrones
WhatsApp started testing its UPI-based payments feature in India towards the beginning of February with 1 Mn users. The instant messaging company recently also added ‘Send to UPI ID’, in addition to other features like advanced GIF search and stickers search.
In March 2018, WhatsApp had introduced ‘transact via QR code’ feature for Indian users.
Since the beginning of a pilot project, WhatsApp’s entry into the country’s digital payments sector has been marred by conflicts and controversies. Paytm’s CEO Vijay Shekhar Sharma had accused the company of trying to enter the market via unfair means.
Among the concerns raised by the Paytm founder was the fact that WhatsApp’s trial service does not require a login session and Aadhaar-based payments. Sharma believed a lack of a login makes WhatsApp payments a security risk, akin to giving an open ATM to everyone.
However, soon enough, players like MobiKwik, PayU, and FreeCharge took chances to take a dig at Paytm crying foul over being threatened unlike at the time of Free Basics when Indian Internet entrepreneurs rallied behind the cause.
In a report, Credit Suisse predicted that India’s digital payments industry, which is currently worth around $200 Bn, is expected to grow five-fold to reach $1 Tn by 2023. The report added that within the said period, the value of digital payments will likely jump from the current 10% to over 25%.
At the time when Paytm is mired in controversy over alleged sharing of user data with PMO, WhatsApp looks ready to gorge on the caveat of mistrust that has been created following the controversy for Paytm.