Facebook-owned WhatsApp has been given permission by National Payments Corporation of India (NPCI) to beta test its new payments service. The WhatsApp Payments service will be tested with a limited user base of one million and low transaction limit. However, as of now, NPCI has not specified the per-transaction limit permissible for the messaging app. This option by Whatsapp was enabled to make payments using UPI for select users on February 9, with ICICI Bank as the partner lender.
NPCI said that in the coming weeks, four banks will join the multi-bank BHIM UPI model. Once the beta test becomes successful, the full feature product shall be released. NPCI also highlighted the advantage of multi-bank model that offer transaction load distribution between banks and helps to integrate popular apps easily with BHIM UPI.
NPCI which is an umbrella organisation for all retail payments in India, said in a statement that for for interoperability, such as the ability to send and receive money through any UPI ID, intent and collect call and capabilities to read and generate BHIM and Bharat QR code are required in its final form in any UPI app.
However, Paytm’s founder Vijay Shekhar Sharma, against whose company WhatsApp payment service will stand as a rival, has alleged that the US firm was getting the unfair advantage. Sharma has been critical of the Facebook-owned company. Raising his concern over testing payments through WhatsApp, he has alleged that UPI payment platform through the messaging app has security risks for consumers. He added by saying that the service is not in compliance with the guidelines.
After failing to win war against India’s open internet with cheap tricks of free basics, Facebook is again in play.
Killing beautiful open UPI system with its custom close garden implementation.
I am surprised, champions of open @India_Stack , let it happen ! https://t.co/wIsNuF1AiB— Vijay Shekhar (@vijayshekhar) February 14, 2018
He has also alleged that Facebook has arm-twisted UPI to derive benefits. Sharma had said Facebook was “killing beautiful open UPI system with its custom close garden implementation.”
