India Lifts WhatsApp Payment Restrictions

WhatsApp Pay Gains Full Access in India

Restrictions on WhatsApp’s payments functionality in India have been lifted, representing a substantial achievement for Meta within its most significant user base. This development allows the social media company to more effectively challenge established fintech competitors.

NPCI Approval and User Expansion

The National Payments Corporation of India (NPCI), which governs the widely used Unified Payments Interface (UPI) system, announced on Tuesday that WhatsApp is now authorized to extend WhatsApp Pay to all of its users throughout the country. WhatsApp currently boasts over 500 million users in India.

Previously, WhatsApp Pay operated under a limit of 100 million users. This decision indicates a change in the regulatory stance towards WhatsApp’s ambitions in the payments sector.

Gradual Rollout and Regulatory History

The NPCI, which operates under the purview of the Reserve Bank of India, had previously favored a phased implementation. Initial access was restricted to 40 million users in 2020, with the cap subsequently raised to 100 million in 2022.

UPI Market Dynamics and Competition

WhatsApp’s broadened access arrives as India’s UPI platform, handling over 13 billion monthly transactions, addresses concerns regarding market dominance. Currently, Google Pay and PhonePe, supported by Walmart, collectively manage over 85% of all UPI transactions.

30% Transaction Cap Delayed

The NPCI has also postponed the implementation of a proposed 30% cap on the transaction share of any single application within the UPI network. The effective date for this rule has been extended by two years, now set for December 31, 2026.

WhatsApp’s Vision for Digital Payments

A WhatsApp spokesperson communicated to TechCrunch through the application, stating, “We’re committed to making payments on WhatsApp simple, reliable, and secure.”

The company intends to enhance user experiences through diverse applications, including bill settlements, ticket purchases, and online shopping. Their objective is to promote the growth of digital payments and UPI adoption, thereby furthering India’s digital and financial inclusion initiatives.

UPI is a key component of India’s digital infrastructure.