As India is moving towards a cashless economy, we are seeing a lot of growth in payment apps with Paytm making huge numbers and BHIM making an entry in the Unified Payment Interface category.
The cashless transactions have even seen a growth of 1000x at the time of demonetization, which reflects India as a potential cashless economy.
Being already told about Paytm making a huge profit, WhatsApp is also set to launch their own digital payment platform within six months and it can be a potential threat to Paytm.
Let’s read more in detail.
The report was published on The Ken, and no official words are there from the house of WhatsApp.
But it seems to be true..
WhatsApp is looking to hire someone who has qualified knowledge and experience in the field of digital payment, specially UPI (Unified Payment Interface) is given preference. WhatsApp’s main focus on UPI reflects that it will also work on the same integration.
WhatsApp has 200 million users in India, which is an edge in case they enter into the payment market, due to its vast user base. The user will not have to download another app for making a payment like they have to now, and they can transact through a single app. Also, as WhatsApp is vastly used so the possibility is that both the parties involved in the transaction will be using WhatsApp.
The introduction of UPI in WhatsApp is going to hurt the Paytm market cap big-time. The first reason being user will not keep an additional app only for payment purpose when they can do the transactions from WhatsApp only.
Second, Paytm doesn’t work on UPI platform thus it costs the user many kinds of additional charges like bank transfer charges, and transaction charges.
Paytm also has a transaction limit which is not the case with UPI-based apps. A user on UPI app can make transactions of high amount.
Say NO to money! Oops! NO to cash currency.
WhatsApp for business
WhatsApp is already reported to be working on a business app, to connect the business to the right and targetted customer base. Though it is not again clear when the app may make an entry.