WhatsApp Pay goes official after NPCI approval

"Digital payments are really important right now. It’s safer than handing someone cash and eliminates the need from standing in line at the bank...we’ve been working on this with the National Payments Corporation of India, who oversee everything to make sure it’s secure and reliable. And we’ve built it using India’s Unified Payments Interface, which makes it easy for anyone to instantly accept payments across different apps -- and for companies to provide people with great services," he added.

The National Payment Corp of India’s clearance for WhatsApp Pay limits the number of users who can use the feature on the platform to 20 million in the first phase. Facebook-owned WhatsApp has about 400 million users in India. The NPCI’s approval came on the same day it limited the transactions a third-party app like WhatsApp Pay can carry out to 30% of the total volume on the UPI network. The move is expected to allay fears of regulatory authorities including the Reserve Bank of India over potential monopoly risks.

In a separate blog post, WhatsApp said starting Friday, people across India will be able to send money through WhatsApp and that the 'secure' payments experience makes transferring money just as easy as sending a message. "To send money on WhatsApp in India, it’s necessary to have a bank account and debit card in India. WhatsApp sends instructions to banks, also known as payment service providers, that initiate the transfer of money via UPI between sender and receiver bank accounts. People can send money on WhatsApp to anyone using a UPI supported app," the company said.

NPCI’s move comes just days after its popular UPI network has for the first time crossed the 2 billion monthly transaction mark to firmly establish itself as the primary retail payment channel in the country. In October, UPI processed 2.07 billion transactions worth Rs 3.86 lakh crore. Market participants expect the UPI volume in India to further increase, aided by the entry of WhatsApp Pay and a growing propensity in the country’s massive consumer market towards digital payments.