Facebook owned WhatsApp is all set to launch its peer to peer, UPI based Pay service for over 300 million users especially the small and medium businesses (SMBs) in India sometime later this year.
WhatsApp launched a test run of its payments service with one million users last year to boost digital inclusion in India which got stuck in the digital payments framework guidelines but now, the service is in the final stages. WhatsApp Pay will make a strong impact in the payments ecosystem.
According to a report by Omidyar Network and the Boston Consulting Group (BCG), nearly half of MSME owners with annual business revenue between Rs 3 lakh and Rs 75 crore would use WhatsApp Payments once it is fully rolled out. WhatsApp Pay would create a huge opportunity for the MSMEs to go digital.
WhatsApp currently has over 300 million users in India (Facebook has another 300 million in the country) and once it starts Peer to Peer (P2P) UPI based Pay service, the sheer numbers will take it beyond Paytm which last reported over 230 million users.
Digital wallet payment solutions are becoming more relevant for the Indian economy driven by mobile centric Internet penetration. WhatsApp has the potential to leverage its existing user base and become the leading payments services.
The company has told the Supreme Court that it would comply with the Reserve Bank of India’s (RBI) data localization norms before launching the full payments service in the country.
Facebook CEO Mark Zuckerberg announced that the company is actively working on to launch WhatsApp Pay in India.