WhatsApp, a Facebook Inc. product, is all set to enter into Digital Payment market in India. This has triggered an alarm to all other major existing players in Digital Payment market. With more than 200 million users in India, it is definitely a big threat to other.
Rivals are quoting this as a very negative impact on their business. Daily active users of WhatsApp is more than 20 times of that of PayTM. This makes a serious threat to others.
As of now, the feature is under test phase and available to selected users only for development suggestions and system stabilisation. The feature is likely to be available from 1st week of April.
A few months back, Google has also entered in this segment with an app called “TEZ”. Other players like PayTM, Mobikwik, Airtel Money, Phone Pe and many other apps are already on the market. The market is so attractive that even e-commerce giant like Amazon and Flipkart are also using their own Wallets.
WhatsApp is a very popular app in India and available in almost all smartphones, especially in urban and semi-urban areas. Its daily active user is much more than any other digital payment app. This makes a great platform to have the new feature.
The WhatsApp digital payment will be compatible with UPI (Unified Payment Interface).
The resistance of rivals stems in part from how China’s mobile payments market has been drastically reshaped. Once dominant Alipay has seen its market share slump since WeChat integrated its payments system with messaging in 2013. WeChat now has 40 percent of mobile transactions.
How will it impact your regular life?
WhatsApp is being used by almost all professionals and a system, which is available to everyone, can be easy to use. Since cross-platform money transfer is still not in place, so putting everyone on the same platform will ease transaction. It will save your time as well.