WhatsApp, the Facebook owned company, will be making WhatsApp Pay live to the Indian users by next week in an attempt to rise up their market shares. The messaging service will be partnerning with HDFC Bank Ltd., ICICI Bank Ltd. and Axis Bank Ltd. to process the transfers and State Bank of India will be joining once it has all the systems in place.
Vivek Belgavi, leader for financial technology at PwC India said ” WhatsApp has a great starting point: a monopoly in chat. High engagement makes it a credible competition.” Analysts estimate more than 200 million Indians already use WhatsApp messaging, equivalent to 60 per cent of the US population. Aslo, the daily active usage of WhatsApp is 20% greater than that of PayTm’s.
This move has been compared to WeChat, which reshaped payments in China when it expanded beyond messaging. WhatsApp Pay started with 1 million users in February, and will soon prove to give stiff competition to rivals like Google Tez and Alibaba-backed Paytm. The combination of social networks and payment will most likely make WhatsApp Pay successful.