WhatsApp Pay Not Authorized For Full UPI-Based Operations: Here’s Why

WhatsApp has been pushing its payments platform in India but has been consistently facing hurdles. In the latest update, the Reserve Bank of India told the Supreme Court to not grant WhatsApp permission to go live for the UPI payment system. This means that WhatsApp Pay will take a much longer time to become a full-fledged system.

WhatsApp Pay Faces Another Delay

Going into the details, RBI said that it has examined the responses of the NPCI (National Payments Corporation of India). However, the supreme bank is concerned "that WhatsApp was storing some payment data elements outside India beyond the permitted timelines indicated in the circular and the Frequently Asked Questions on 'Storage of Payment System Data' issued by RBI on June 26, 2019."

Press agencies report that presently, RBI has told the Supreme Court not to grant permission to WhatsApp to go live for full-scale operation on the UPI payment system. What's more, RBI has also denied that the circular dated April 6, 2018, on "Storage of Payment System Data" is toned down. NPCI too cites concerns about the storage of the payment system data.

Accordingly, RBI stated that NPCI was advised to ensure the data related to WhatsApp Pay are not stored by WhatsApp outside India beyond the permitted timelines. Plus, the agencies were advised to check any payment transaction isn't stored in hashed/de-identified/encrypted form in its systems outside India.

"The NPCI was also advised not to permit WhatsApp to go live for full-scale operations on the UPI payment system, till the time they are fully compliant," RBI said in a press statement. From the looks of it, WhatsApp Pay will be facing much more delay for a full rollout.

Looking back, WhatsApp had already noted that it's willing to fully comply with the norms of the RBI and NPCI. But now, the RBI has urged the Supreme Court to deny authorization to WhatsApp. It's uncertain what may follow next, but WhatsApp may urge authorities its willingness to comply with the required norms.