The Indian National Payments Corp. gave WhatsApp the green light to expand payments to up to 20 million people in the country.
Facebook's own messaging application can offer payments via the multi-bank model Unified Payments Interface from NPCI.
WhatsApp said in a blog post on Friday: “WhatsApp developed our payment function in cooperation with the NPCI using the UPI, a first real-time payment system in India that enables transactions with over 160 supported banks. We are excited to participate in India's campaign to improve the usability and use of digital payments, which is helping to build financial inclusion in India. "
Users must have a bank account and debit card in India to use payments.
WhatsApp sends instructions to banks or payment service providers to initiate the transfer of money via UPI between the sender's and recipient's accounts. A UPI PIN (Personal Identification Code) must be entered for each payment.
Five leading banks in India are making the debut: Axis Bank, HDFC Bank, ICICI Bank, Jio Payments Bank and State Bank of India.
WhatsApp wrote in his blog post, “In the long run, we believe that the combination of WhatsApp and UPI's unique architecture can help local organizations address some of the key challenges of our time, including the increasing involvement of rural areas in the digital economy and delivery of financial services for those who have never had access. "
WhatsApp started testing payments in India in early 2018 with around 1 million users.
WhatsApp announced the first nationwide rollout of its payment service in Brazil in June, saying at the time that payments enabled by Facebook Pay could be made securely without leaving the app and that a special six-digit PIN or fingerprint would be required to prevent unauthorized transactions.
However, this service was discontinued by Banco Central do Brasil before the end of the month.