NEW DELHI/NEW YORK (Reuters) – WhatsApp announced on Wednesday that it will introduce credit card payments and services from rival digital payment providers within its app in India. This move aims to enhance commerce offerings in WhatsApp’s largest market, where it boasts over 500 million users. Currently, regulatory restrictions limit its in-app WhatsApp Pay service to only 100 million people. While users can use popular services like Google Pay, Paytm, and PhonePe, they are redirected outside of the app for payment. However, the new update will allow payments via rival services and any others that run on India’s instant money transfer system UPI to be made directly within WhatsApp. Additionally, new in-app options for credit and debit cards will be offered.
These additions align with Meta CEO Mark Zuckerberg’s plan to make business messaging a significant driver of the company’s sales growth. As Meta’s core ads business and metaverse project face challenges, Zuckerberg is increasingly focusing on the potential of business messaging. While WhatsApp Pay users will still be limited in India, there will be no restrictions on the number of users allowed to transact with businesses on WhatsApp using other payment methods.
With approximately 300 million people spending around $180 billion each month via India’s UPI system, the new transaction options hold significant potential to attract businesses to pay Meta for access to WhatsApp users.
So far, WhatsApp has restricted its end-to-end shopping experiences in India to pilot programs, such as the partnership with JioMart, an online grocery service owned by India’s richest person, Mukesh Ambani. They have also collaborated with the metro systems in Chennai and Bangalore. However, the new payment tools will now be available to any company in India that uses WhatsApp’s business platform, primarily serving large companies.
Aside from the payment feature, Meta is also expanding its Meta Verified subscription program to businesses worldwide. This program allows companies to validate their authenticity and elevate their content in users’ feeds. Monthly subscriptions will initially be available on Instagram and Facebook in select countries, with plans to expand to WhatsApp at a later date. The cost will be $21.99 per Facebook page or Instagram account, or $34.99 for both.
In conclusion, WhatsApp’s introduction of credit card payments and services from rival digital payment providers within its app in India demonstrates its commitment to enhancing commerce offerings in its largest market. By allowing direct payments within the app and offering new payment options, WhatsApp aims to attract businesses to pay for access to its vast user base. This strategic move aligns with Meta’s focus on business messaging and aims to mitigate challenges faced by its core ads business and metaverse project.
(Reporting by Aditya Kalra in New Delhi and Katie Paul in New York; Additional Reporting by Munsif Vengattil; Editing by Lisa Shumaker)
Credit: The Star : Tech Feed
