With digital payments witnessing exponential growth, the payment landscape has shown some significant shifts over the past few years. The digital payment industry in India is expected to reach $ 500 billion by 2020, adding 15 percent to the country’s GDP, according to a recent report by Google and Boston Consulting Group. With over 1 billion mobile subscriptions, India currently ranks second in the world. About 240 million are smartphones users, and this base is projected to increase to over 520 million by 2020, which has attracted many players in the digital space to tap this growth trend. WhatsApp’s has been at the forefront of drawing this growth trend. For that, the Facebook-led company is vying government approval in India. The company executives are running from pillar to post in the government corridors seeking regulatory approvals.
In addition to the country’s organic growth, many factors make the digital payment space attractive for big players, primarily government initiative of linking Aadhar and Jan Dhan Yojana which was a catalyst in catapulting the digital payment space. In addition to these factors, Jio launched its 4G services which added more than 300 million into the digital revolution.
The Indian union government ‘black sheep’- demonetization forced people to make a digital switch accelerated digital India mission. All these culminated in the emergence of Paytm, PayU, Google TEZ, and banking institutions launching their payment gateways.
WhatsApp has accelerated its operations in India. In addition to that, the letter mentions that WhatsApp’s partner banks have also submitted a request for formal approval. The platform works closely with the Indian government, National Payments Corporation (NPCI), and several banks, including payment service providers. Also, WhatsApp faced retaliation from the homegrown rival. In addition to that, the recent RBI circular that emphasizes data localization has caused unhappiness with WhatsApp executives. They have demanded that the government encourages a level playing field.
Despite the fallback, the company is determined and confident from the responses received from the stakeholders NPCI and bank partners. The company executives are satisfied with being fully compliant with UPI checklist. Alongside, WhatsApp has made all necessary submissions and has passed the security audits required to launch WhatsApp Payment.
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