Soon, You Can Make Payments Using WhatsApp. Here Are The Details!
WhatsApp in-chat payment will allow users to make online payments and chat with friends the same time through a single application. This amazing features will allow users to perform money transfers using WhatsApp.
The beta version of the app constantly advancing and these updates will only be available to the beta testers of the app. After examining the feature will likely to be integrated to all the uses across the globe.
The Facebook-owned messaging company received government approval to integrate with Unified Payments Interface (UPI) in July, joining other global giants including Google that queued up to roll out their own versions of the instant payments facility that’s directly linked to banks.
WhatsApp’s payments feature is highly anticipated because of the huge popularity of the app across diverse populations in India and its anticipated ability to bring a huge segment of the country within the digital payments ecosystem.
Bankers, however, say there are various security concerns that need to be addressed before the integration, especially with regard to data of bank customers.
Involves Many Levels of Encryption
“To be able to send money as easily as a text message involves ensuring various levels of encryption to keep the data safe,” said Senior Banker involved in the system integration process with WhatsApp. “UPI, by itself, also has a complicated settlement mechanism between various banking partners. These issues need to be attended to before the product goes live.”
“WhatsApp is expected to add stronger volume growth to the UPI platform. Even if it starts off primarily with peer-to-peer transactions, if it manages to build a usage habit among its captive users, then taking UPI for merchant payments will not be a huge challenge”, Senior Banker added.
WhatsApp will act as a top layer that will identify the sender and the recipient in the back-end.
Since its payments platform will be integrated with banks, it will also identify the bank account of the customers. Finally, UPI will help settle the transactions.
UPI, which reported 145 million transactions in December, has emerged as one of the fastest-growing payments instruments since the demonetization of high-value banknotes in November 2016, mainly supported by the strong adoption of Google Tez, Paytm and Flipkart’s payments arm, PhonePe.
While Tez and PhonePe have crossed 10 million downloads each on Google Play Store, Paytm, known more for its digital wallets, has more than 100 million downloads.
All these platforms are incentivizing users to transact on their UPI platforms.
WhatsApp, which has crossed 1 billion downloads globally, has more than 200 million monthly active users in India.