WhatsApp picks UPI for payments

Facebook-owned WhatsApp is working on launching payments in India. UPI appears to have won over wallets as the mechanism

WhatsApp’s UPI choice is led by the fact that all other payment systems would hamper user experience

Wallets could have been favourable but the RBI’s draft guidelines make it an unviable option

Picking UPI would also help Facebook get on the right side of the government

UPI is a fledgeling system and it’s free. So WhatsApp won’t be able to make money using it

WhatsApp, the Facebook-owned messaging app, is working quietly to launch person-to-person payments on its platform within the next six months, said four sources with knowledge of the matter.

The initiative is seen as strategic for Facebook and currently being driven out of the company’s headquarters in Menlo Park, California. Its career page lists, among other roles, an opening for a digital transaction lead with knowledge of UPI, Aadhaar and BHIM, to be based out of Menlo Park.

WhatsApp has no team in India as yet. But with over 200 million Indian users already, its entry into the payments space is likely to be pivotal for the entire sector.

AUTHOR

Arundhati Ramanathan

Arundhati is Bengaluru-based. She is interested in how people use money in the digital age and how new economies will take shape based on that interaction. She has spent over 10 years reporting and writing on various subjects. Previous stints were at Mint, Outlook Business and Reuters.

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