WhatsApp pay will not be available in India in the near future. The company has not been granted the license for digital payment business owing to 100% data localisation mandated by the government.
WhatsApp pay is going to be the newest player in the digital payment market in the next 6 months. The social media giant Facebook, which owns messaging apps like WhatsApp and Messenger, is going to launch the payment app in a number of countries. However, WhatsApp pay will not be available in India in the near future. The company has not been granted the license for digital payment business owing to 100% data localisation mandated by the government. WhatsApp expects to roll the digital payment application in a number of countries in the next six months, Facebook CEO Mark Zuckerberg said in an earnings conference call with analysts on Thursday.
The payment interface will work on the Unified Payment Interface which enables financial transaction directly from the customer’s bank accounts. WhatsApp is aiming at unifying its payment interface with that of its existing messaging apps- WhatsApp and Messenger- to enable a seamless experience for its customers. The company is working on an example which will enable sending money as easily and as quickly as sending a photograph. The company is really excited about this and expect to make a lot of progress in the next 6 months, Zuckerberg said. The app is already being tested in a number of countries on pilot mode.
The competition in the Indian market is going to get stiff as and when WhatsApp pay is launched in the country. WhatsApp virtually dominates the Indian messaging app market with over 40 crore users in the country. Paytm, Google Pay and PhonePe are the existing market players in the country in the digital payment arena. The dominance of Paytm has of late taken a beating after the entry of Google Pay and PhonePe. Adopting the strategy of heavy cashback and offers, the new entrants broke the monopoly of Paytm. However, competition with WhatsApp pay will be a different ball game altogether as the messaging app already enjoys large market penetration and recognition in the country. To be sure, customers are only going to be pleased with more competition among the players and more offers on the grab.