Source, Telecom News, ET Telecom
NEW DELHI: WhatsApp has obtained regulatory approval to double the number of users of its payment service in India to 40 million, a directly-informed source told Reuters on Friday.
The company had requested that there be no cap for users of its payment service in India.
Instead, the National Payments Corporation of India (NPCI) this week told the company it could double the user base to which it can offer its payments service – currently capped at 20 million – the company said. source.
WhatsApp is owned by Facebook, which recently changed its name to Meta.
The source said the new cap will still hamper the company’s growth prospects given that WhatsApp’s messaging service has more than 500 million users in India, the company’s largest market.
It was not clear when the new cap would take effect.
WhatsApp did not immediately respond to a request for comment, while the NPCI declined to comment.
WhatsApp competes with Alphabet Inc’s Google Pay, SoftBank-backed Paytm and Walmart’s Ant Group and PhonePe in India’s crowded digital marketplace.
The NPCI allowed WhatsApp to launch its payments service last year after the company spent years trying to comply with Indian regulations, including data storage standards that require all data related to payments are stored locally.
WhatsApp has almost reached its user base of 20 million users for payment services, said the source, who declined to be identified because the details are private.
Online transactions, loans and e-wallet services have grown rapidly in India, driven by the government push to encourage cash-hungry merchants and consumers in the country to embrace digital payments.