As the whole industry around the world is focusing on cashless transactions, in India, we have seen the growth too, especially after the introduction of UPI payments.
WhatsApp was pretty much giving hints of its Payments feature when they added vacancy for a UPI programmer and expert on their official website. But after a long wait, WhatsApp has finally shown the first look of how its payment system will work.
WhatsApp Payments will allow all the users to send and receive money from the app 'We all did see this coming'.
The application that was already working on UPI (Unified Payment Interface) has finally launched its own payment service. Though it is nothing new as other messaging platforms like Hike & WeChat are providing this payment service for quite a while but the huge userbase of WhatsApp will definitely give them an edge over its competitors.
200 million WhatsApp users in India can enjoy the cashless fund transfer. After the demonetization happened in 2016, the nation is moving towards a cashless economy. More the cashless transactions, more the scope in this industry, as we already have seen Paytm and MobiKwik making a fortune after the demonetization, WhatsApp is now in the game.
Though Paytm's business might get a break in the offline transactions, WhatsApp's entry in payments sector will affect BHIM and Tez the most. Now, why not Paytm? Because Paytm doesn't work on UPI platform but there is a separate wallet in Paytm which makes more sense to the public in India. While WhatsApp UPI works on bank-to-bank transfer just like BHIM, so why a person will download another separate app when the same service is available on WhatsApp.
There is only one condition- the number registered on WhatsApp and bank should be same. Once confirmed, the user can link their bank account with WhatsApp Payments to enjoy the cashless services.
With over 200 million active users in India, WhatsApp is already available to most of the smartphone users. And it will be more convenient for the vendors to integrate WhatsApp Payments as they will get paid directly into their bank account, so a kind of win-win situation for both the parties ensures a bright future of WhatsApp Payments. Believe or not, chances are you will use WhatsApp Payments to make a transaction in a very near future.
As the messaging giant is moving into payments territory, payments giant Paytm is working to introduce its own messaging platform. But does it make sense for Paytm to introduce their own messaging service? No, I think! Honestly, WhatsApp is now a necessity without which people cannot live.
But it is not the case with Paytm, Paytm can integrate new things, but the chances are that it will not be successful. People are not gonna switch to Paytm just for their payment + messaging service instead they will use WhatsApp as messaging + payment service, as they have been using WhatsApp since forever, necessity you see.
Yes, it sounds awkward to see messaging app providing a different business completely and introducing Payments option. But it is cool; the UPI transactions are very safe. Generally, safer than transacting on Paytm.
UPI transactions are powered by NPCI (National Payments Corporation of India) which currently offers the most secure gateway for payment.
Paytm might hate it but UPI payments are better than Paytm in every possible manner, yes the UPI apps have direct access to the user's bank account. So, any kind of hack into the system can result in a huge financial loss, but that is involved in cc/dc transactions too. Besides this, WhatsApp Payments is a better choice to make payments any day.