WhatsApp’s highly-awaited feature, WhatsApp payments was recently made available in India. allowing users to send and receive money from the messaging app itself. This new update will use the peer-to-peer UPI or Unified Payments Interface feature to send money. UPI is a payment method where the user will have to link their bank account and have a separate UPI PIN to generate the transaction. According to the details provided by WhatsApp, the users will have to enter the PIN number and give either the receiver’s UPI ID or phone number, if linked to make the payment. The UPI to UPI transaction will enable direct transfer of funds to the receiver’s bank account. The question doing the rounds, however, is how to make payments using WhatsApp? Well, all you need to do is follow these simple steps:
1. Go to ‘Settings’ and then click on ‘Payments’.
2. You will be asked to enter the bank details on the Payments page.
3. After entering the details, accept Terms & Conditions and submit.
4. Then, you’ll have to verify your phone number via SMS. You’ll also be asked to feed in your phone number linked to your bank account.
5. The UPI users will then have to select the bank account and the new users will be asked to set up one.
6. After setting up the UPI, you will need to enter the last six digits of your debit card number and the expiry date to create a Virtual Payee Address (VPA).
The WhatsApp Payments option will be available on individual chat screens but the users can also send money to specific users in a group. While Whatsapp Pay seems to have made life easier, it is not compatible for making payments to e-commerce marketplaces such as Flipkart, Amazon, etc.
Also, you cannot make payments to shopkeepers or brick and mortar stores until and unless the shopkeeper is in your contacts. In India, WhatsApp Payments will be directly competing against the likes of Paytm, Mobikwik and Google Tez.
Google Tez, was launched in India just a few months ago in September and is still a fairly new app in India. However, Paytm and Mobikwik are established players and offer many other services that just sending and receiving money.