According to a recent announcement, WhatsApp just launched a new secure payments solution for Indian users. The new payment experience is aimed at making transferring money easier and safer using secure UPI and PIN authentication.
With this new payments solution, users will be able to send money to family members and friends or pay the cost of goods from a distance, limiting the need to exchange cash. The payments solutions is available on the latest version of the iPhone and Android app and is designed with a strong set of security and privacy principles. This also includes personal UPI and PIN authentication features for each payment.
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A Quick Background
This new feature was designed in partnership with the National Payments Corporation of India (NPCI) using the Unified Payment Interface (UPI). The UPI is an India-first, real-time payment system that enables transactions with over 160 banks. With this new payments feature, WhatsApp is set to boost the ease and use of digital payments and enable better financial inclusion in India. WhatsApp is working closely with five leading banks in India – ICICI Bank, HDFC Bank, Axis Bank, the State Bank of India, and Jio Payments Bank to facilitate the service.
Vision
The combination of this WhatsApp solution and UPI’s architecture will help local businesses and rurual users meet payment challenges in the new normal. It will also help increase rural participation in the digital economy by delivering financial services to a large under banked mass that does not usually even have the basic requirements for safe, contactless digital payments.
Anand Kumar Bajaj, MD & CEO at PayNearby commented, “The rolling out of WhatsApp Pay will accelerate UPI adoption. Compared to global counterparts, India leads the pack when it comes to digital payments and enablement to bolster consumer choice and innovation will help boost financial inclusion. Today, we have 400 million active WhatsApp users, while less than 160 million avail mobile payments. Calibrated permission to WhatsApp is a good start to support the cause of financial inclusion, especially in tier 2 and 3 cities. A combination of WhatsApp Pay’s user-friendly interface and UPI’s interoperability will drive larger participation in cashless payments.”
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