WhatsApp Receives NPCI Approval To Offer Payments Services To 100 Million Users

WhatsApp, the instant messaging platform, has just received regulatory approval to more than double the user base of its payments service in India. It is likely to reach a user base of 100 million, claim reports. This information comes as WhatsApp has gained approval from the National Payments Corporation of India (NPCI).

WhatsApp Payments Approval From NPCI

As per a report by Reuters citing two sources familiar with the matter, WhatsApp has gained NPCI approval. For years, the service has been telling NPCI that there should be no cap on the number of users of its payments service in the country.

Despite this request, NPCI has approved that WhatsApp Payments can increase its user base from 40 million to 100 million, adds the report.

As of now, WhatsApp did not leave any official word regarding the NPCI approval. However, the report cites the confirmation regarding the development from NPCI. Though this new relaxation to increase the user base of WhatsApp Payments will come as a relief, it still limits the growth prospects of the app, which has over 500 million users in the country.

Initially, the WhatsApp Payments service started with 20 million users and the cap was increased to 40 million in November last year. Now, it has increased to 100 million users.

Why This Cap On Number Of Users?

WhatsApp told the NPCI numerous times that it wants to operate without a cap on the number of users. However, NPCI is of the view that letting all its users access the payments service that is integrated with the app will let contacts send each funds among each other and strain the country's financial infrastructure, claims one of the sources.

Back in 2020, the NPCI gave WhatsApp approval to launch the payments service after it tried for years to meet the regulations framed by the Indian government. This includes the data storage norms that require all payments-related data to be stored locally within the country.

Given that there is an increasing demand for online transactions, there is a growth in the number of such payment services all over the country. In the growing digital payment market, WhatsApp Payments comes as a challenger to the other payment services, including Alphabet's Google Pay, SoftBank- and Ant Group-supported Paytm and Walmart's PhonePe.