. It appears that WhatsApp has decided to introduce a massive change that could be its most significant one till date. WhatsApp is preparing to launch its intuitive payments feature which is said to already be in the final stages of development. However, for the digital payments space in India, it could be the biggest threat to date. Indians may be able to access the feature in December 2017 and could be the first under the sun to enjoy this facility.The feature could be put on an extended beta mode in November so that it is ready for the expected December launch. WhatsApp has entered into a partnership with three banks, ICICI, HDFC and State Bank of India, which are the top 3 Indian banks to roll out the feature.
One of the unique features is that payments can be made by users from within the chat interface, similar to sharing a location or contact on the IM. A Rupee symbol will pop up alongside the buttons which allow users to share contacts or location by clicking the attach button in the chat interface. When the Rupee button is activated, the user can request or send money. The user has to input the amount to be received/paid, his/her PIN, and merely hit send. At the other end, the recipient will get a notification similar to the one he gets when a contact is added. The request can be accepted or rejected by selecting an appropriate option.
The real threat to existing players in the digital payments space in India comes from the fact that WhatsApp’s cost for customer acquisition will be near zero as it already enjoys a user base of over 200 million Indian users. Interestingly, this number is also the largest around the globe. Another advantage that WhatsApp will enjoy is the unified interface for payments that is available in India, making it easier for anyone else to integrate with Indian banks.Across India, small as well as medium businesses use WhatsApp on an extensive scale. It is estimated that some 2 million women entrepreneurs are selling products with the help of Facebook and WhatsApp with revenues rising to a staggering $9 billion. By 2022, this space could be garnering revenues up to $60 billion.
WeChat, another messaging app of Chinese origin enjoys a customer base of 938 million on a and is the predominant player in China. Payment feature offered by this app was quickly grabbed by Chinese users giving the app a 40% market share. Can WhatsApp do a WeChat in India?
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