Tuesday, 29 November 2022

WhatsApp to Offer Benefits to Users in India for Using App for Payments

WhatsApp to Offer Benefits to Users in India for Using App for Payments

WhatsApp plans to offer monetary benefits in cashback to users to lure new customers into using its payments platform. At the same time, the social media giant is also testing it for merchant payments. This will enable WhatsApp to compete with its rivals, such as Google and PhonePe, which have a significant market share in processing the volume of UPI transactions in India.

The National Payments Corporation of India (NPCI) had bumped the limit of users WhatsApp could have for its payments service to 100 million. This was a big positive for the platform as it already has 400 million+ users in India leveraging the app for texting colleagues, friends, and more every day.

WhatsApp Will Give this Much Money to Users in India

According to a Reuters report, WhatsApp is all ready to offer up to Rs 33 ($0.40) as cashback to users for making transactions on its platform. Users can send money to their contacts directly from the chat window using WhatsApp Pay.

WhatsApp to Offer Benefits to Users in India for Using App for Payments 1unsplash image

Read More: Beware of UPI QR Code Scam

There won’t be any minimum limit to how much money users will have to send to get this cashback from WhatsApp. The incentive will be spread over three transactions. Even if users send as little as Rs 1 to other users from WhatsApp Pay, they will be eligible for the transaction.

WhatsApp mainly drives user acquisition for online payments and makes people aware that they can transact through its platform.

While the amounts are not that big, it would still give many Indians a compelling enough reason to switch the platform to WhatsApp for making payments, said Neil Shah, Vice President, Counterpoint Research.

The company told Reuters that it is running this cashback campaign in a phased manner to unlock the potential of payments on WhatsApp. It is noted that this is not the first time that Whatsapp will be offering users cashback.