WhatsApp, a subsidiary of Meta Platforms Inc., announced on Wednesday that it is set to enhance its commerce offerings in India by introducing credit card payments and services from rival digital payment providers within its app. This move marks WhatsApp’s latest endeavour to expand its financial services and tap into India’s thriving digital payments market.
With over 500 million users in India, WhatsApp has a significant user base in the country. However, regulatory restrictions have limited its in-app WhatsApp Pay service to just 100 million users. Previously, users could make payments on WhatsApp through external services like Google Pay, Paytm, and PhonePe, but this required redirection outside the WhatsApp app.
In a significant development, WhatsApp will now enable payments directly within its platform for these rival services, including any others operating on India’s instant money transfer system, UPI (Unified Payments Interface). Additionally, users will have access to new in-app options for credit and debit card payments.
This strategic move aligns with Meta CEO Mark Zuckerberg’s vision to make business messaging a key driver of the company’s sales growth. It is particularly important as Meta’s core advertising business faces challenges, and its metaverse project gains momentum.
While WhatsApp Pay will remain limited to 100 million users, there are no such constraints for transactions with businesses on WhatsApp using other payment methods. This opens up lucrative opportunities for businesses to engage with WhatsApp’s massive user base, as around 300 million people in India transact approximately $180 billion monthly through the UPI system.
To facilitate this, WhatsApp’s new payment features will be available to any company in India using WhatsApp’s business platform, which primarily caters to larger enterprises.
In addition to expanding payment services, Meta is extending its Meta Verified subscription program to businesses globally. This initiative provides companies with a means to verify authenticity and promote their content within users’ feeds. Initially available on Instagram and Facebook in select countries, monthly subscriptions will cost $21.99 per Facebook page or Instagram account, or $34.99 for both, with plans to roll out the service on WhatsApp in the future.
WhatsApp’s latest updates signal its ambition to become a comprehensive platform for business interactions and financial services, aiming to leverage its massive user base to drive growth in the increasingly competitive Indian digital payments market.
WhatsApp’s move to offer expanded payment and commerce services in India could have far-reaching implications for social media commerce worldwide. This expansion signals increased competition among major platforms, potentially leading to innovation and improved services in the social commerce sector globally. It may encourage other platforms to follow suit and expand their payment and commerce offerings. User trust and data security will be paramount, setting a standard for data protection and enhancing user confidence in online transactions.
Additionally, this move could diversify revenue streams for social media companies and foster collaborations with local businesses. However, it may also attract regulatory scrutiny as financial services are integrated into social media platforms, potentially leading to the development of global standards for social commerce. Overall, WhatsApp’s efforts in India could reshape the landscape of social media commerce on a global scale.
Kiki Garba
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