You can now send money through WhatsApp: How it works?

Global messaging giant WhatsApp has on Wednesday unveiled its new feature payment and the users can now stick to WhatsApp not only for messages but also for sending and receiving payments. The Facebook-owned messaging platform has announced that it is now live with the State Bank of India, ICICI Bank, HDFC Bank, and Axis Bank for its 20 million users in India.

The crucial development has come when India is settling up for the new normal and when the country is witnessing a deep stretch of digitization. According to reports, the WhatsApp payment service had received approval from the National Payments Corporation of India (NPCI) in November, after two years, to launch the payment feature and to go live on Unified Payment Interface (UPI) with over 160 supported banks. 

The peer-to-peer (P2P) payment feature is available now in 10 Indian regional language versions of WhatsApp. The reports say that the messaging site can expand its UPI user base in a graded manner starting with a maximum registered base of 20 million. The head of WhatsApp India has said that the UPI is a transformative service and stated, "We jointly have the opportunity to bring the benefits of our digital economy and financial inclusion to a large number of users who have not had full access to them before". 

In an official statement, the head of WhatsApp India said, "We are excited and privileged to partner with the State Bank of India, ICICI Bank, HDFC Bank, and Axis Bank to bring simple and secure digital payments to WhatsApp users across India". With the launch, the WhatsApp payment platform will be competing against similar platforms in India that are majorly and frequently used including Google Pay, PhonePe, and Paytm. 

The reports say that the users need to update the messaging application if required to avail the payment service. Earlier, WhatsApp had said that the payments feature is designed with a strong set of security and privacy principles, including entering a personal UPI PIN for each payment. The representatives of the banks said that the WhatsApp payment service is a unique opportunity to enhance essential financial services to people across the country. 

They further stated that the payment service is yet another important step towards attaining financial inclusion and making financial services available to the people affordably. It will also lubricate the economic growth and development of the nation. According to a news agency, RedSeer, the Bangalore-based research firm said that the digital payments in India are expected to reach $94 trillion by the financial year 2025. On November 6, WhatsApp had announced that people across India will be able to send money through the messaging site. 

It further stated that the payment service will make transferring money just as easy as sending a message and people can safely send money to a family member or share the cost of goods from a distance without having to exchange cash in person or going to a local bank. You can send money for both Android and iPhone after you have added your bank account to WhatsApp. The reports say to send money on WhatsApp in India, it's necessary to have a bank account and debit card in India and WhatsApp will send the instructions to banks and payment service providers which will then initiate the transfer of money through UPI between sender and receiver bank accounts.