Whatsapp Pay, A new entrant in the UPI based payment interface – What would be the earning for a Payment company with more than 200 million users ? Non imaginable, but ewallet companies are going to face a tough competition ever with newly upcoming UPI interface by Facebook owned Whatsapp.
Whatsapp, a P2P messaging platform is sooner be launching UPI based payment interface in partner with few of the members banks. UPI is the payment interface owned by National Payment Corporation of India (NPCI), who owned BHIM.
Currently, the Indian Digital Payment space is flooded with lot of applications from NPCI,banks, eWallet companies etc. The margin of earning is very low in this space especially for eWallet companies as the initial investment is higher with annual recurring expenses. The customer base is very poor for many of the eWallet companies like PayTm, Freecharge, Phonepe etc.
Retaining customer on digital platform is really a challenge for many of banks & eWallet companies. They are offering a lot of discounts and coupons to retain customer.
Advantages of Whatsapp over existing eWallet companies & Banks
- There are 200 million active loyal user base with Whatsapp, it means they need not to compete for retaining customer
- Whatsapp doesn’t have any direct competition with any other messaging platform, so future is secured.
- Whatsapp already have launched the Whatsapp Business, a messaging cum real time customer servicing application for Businesses like Restaurant, Traders, Food chains, Gifting etc.
- With the Integration of Whatsapp with Whatsapp Business, the users of application can make a payment through the application itself. They need not to install any other application.
How Does Whatsapp Pay Good for Banks ?
Whatsapp pay can boost the digital transactions of Banks. 200 million ready made customer base of Whatsapp could be used by these banks for on-boarding. The UPI interface enables user to choose any of the banks from the list for making transaction. Customer needs to have a bank account if they want to make transaction through Whatsapp Pa. Hence, a good opportunity for Banks for getting merchants as well as other customer.
Whatsapp has started testing the beta version of their UPI based payment solution Whatsapp Pay with selected bank’s and users. Rumored to be launched in the month of March.