WhatsApp’s Indian Payments Service Expands to 100 Million Users

Meta Platforms’ WhatsApp has received regulatory approval to extra double the variety of customers of its funds service in India to 100 million, two sources aware of the matter instructed Reuters on Wednesday.

WhatsApp has over time instructed the National Payments Corporation of India (NPCI) that there ought to be no cap on customers of its funds service in India, its greatest market.

Instead, the NPCI instructed the corporate on Wednesday it may possibly enhance the variety of customers to 100 million from 40 million presently, the sources mentioned.

WhatsApp didn’t instantly reply to a request for remark. The NPCI confirmed the event in a press release to Reuters.

Though the relief will come as a aid, the brand new cap may nonetheless restrict WhatsApp’s development prospects given it has greater than 500 million customers in India.

WhatsApp has instructed the NPCI a number of occasions it desires to function “without a cap”, however privately the NPCI is of the view that permitting all its customers to entry the funds service – built-in with the app and permitting contacts to ship one another funds – may pressure the nation’s monetary infrastructure, mentioned one of many sources.

The NPCI gave WhatsApp approval to launch the funds service in 2020 after the corporate spent years attempting to adjust to Indian laws, together with information storage norms that require all payments-related information to be saved domestically.

It began with 20 million customers and the cap was elevated to 40 million in November final yr.

WhatsApp competes with Alphabet’s Google Pay, SoftBank- and Ant Group-backed Paytm and Walmart’s PhonePe in India’s crowded digital market.

Online transactions, lending and e-wallet providers have been rising quickly in India, led by a authorities push to make the nation’s cash-loving retailers and customers undertake digital funds.

© Thomson Reuters 2022