WhatsApp UPI payment increase limit to 40 million from 20 million users by NPCI

WhatsApp UPI payment increase limit to 40 million from 20 million users by NPCI

A move that could step up competition in the digital payments space in India, NPCI has approved raising the user cap for WhatsApp's payment service from the current 20 million to 40 million.

The report earlier this month that WhatsApp is pushing for an increase in user cap beyond the 20 million and that NPCI is reviewing this. Moneycontrol also said that NPCI would increase this phase so that the payment system is not overwhelmed.

A source said.

"They were pushing the cap to be lifted altogether but NPCI didn't want to do that so they have raised it to 40 million. The numbers have gone up significantly and is very close to break the 20 million limit,"

WhatsApp UPI payment increase limit to 40 million from 20 million users by NPCI 1pixabay image

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The NPCI, which handles the country's retail payment and settlement systems, had allowed WhatsApp to start payment services last year in November with a cap of 20 million users. The Meta-owned company was expected to upset the payments space with its vast user base in India, but it had not run away in a big way.

Now, WhatsApp has decided to step up efforts to expand the payment service and wants more end users.

WhatsApp's messenger service has more than 400 million users in India. Lifting the limit for payment service in one go can lead to a remarkably mass high transaction on NPCI's platform.

NPCI is considering increasing the limit in a phased manner because it cannot handle the vast volumes that might come with deleting the lid," the source added

Since September 2021, WhatsApp has been doubling down on expanding its payment service in India.

In September, WhatsApp India's director of payments, Manesh Mahatme, said it is scaling up the service in phases in partnership with NPCI. Mahatme said the focus would be on accelerating marketing initiatives to increase awareness of the payments feature on the messaging app.