WhatsApp plans to launch peer to peer payments in India.
Whatsapp is the most popular messaging app in India. It has over 200 million users in the country. Whatspp is already being used in a big way by small and individuals business owners to talk to their customers. India is booming towards digital payments and now WhatsApp is preparing to enter India’s digital payments industry, setting up a clash between the popular Facebook-owned mobile messaging app and PayTM, the payments start-up backed by China’s Alibaba.
According to a new report In the next six months WhatsApp is likely to launch peer-to-peer payments in India. The company will also use the government’s UPI(Unified Payments Interface) interface, Aadhaar (India’s biometric identity system) and BHIM. According to the Mint report based on data from India’s central bank it is noticed that the total value of digital transactions have grown year on year. Modi government had taken a step in november last year, demonetise currency notes of Rs 500 and Rs 1000 to curb black money. This step created a shortage of cash in the market and forced many users to hop onto the digital payments.
Whatsapp financial ambitions can be a threat to PayTM. If Whatsapp go ahead with the launch then it will become the largest UPI app of all. In India Whatsapp can easily become app for peer to peer payments. Last month WhatsApp CEO Brian Acton had visited India and met with Prime Minister Narendra Modi and talks about the government’s BHIM app. If Whatsapp enters peer to peer payment, then it could kill the other smaller apps that had been offering peer to peer payments. With Whatsapp peer to peer payment users can transfer money at their local kirana stores and small shops.
In the country like China, the model of a combined chat and transactions app has worked well. WeChat effectively combines both chat and payments capabilities.