WhatsApp Pay

As you all know that I have experience of working with different banks and payments sector. Recently, I’m associated with a Payments Sector. In this article, I want to highlight the recent advancement or involvement in the field of Payments. Payments or Banking is always an important factor in every decade. When there is no banking system, people use solid money or cash to do business or any trading and stores their money in a secret vault at their homes. When the banking system is established, people are trusting on banks and do their transactions with the help of banks by cheque or account transfer.

In 2020, the transaction is a very easy or understandable process. Now every process is only a one-click process. Banking Mobile Apps and Credit/Debit Cards are the easiest way for the transaction, no need to visit the bank. When Information Technology (IT) or Cloud Platform combines with the banking system, it boosts the whole process of payments. You can now proceed with a transaction from one corner to another corner of the world, with just one click because of Mobile Apps. One of the main mobile apps also came into the field of payments. WhatsApp introduces its payment method and named this feature WhatsApp-Pay.

WhatsApp Pay is an in-chat payment feature that enables users to make transfers to their contact list through WhatsApp. It's a UPI-based payment service that helps you both to send and receive money. Unified Payments Interface (UPI) is a framework that powers several bank accounts into a single smartphone application (of any participating bank), combining many banking functions, streamlined fund routing & merchant payments into singlehood. It also refers to the "Peer to Peer" collection order, which can be scheduled and paid on the basis of criteria and convenience.

On the 8th of February 2018, WhatsApp payment was tested for the first time in India, where 400 million users make the country WhatsApp’s largest market. This decision makes even more sense if you know that India is home to more than a third, nearly 15 million, of the 50 million users of WhatsApp's youngest sibling, WhatsApp Company. Eventually, the final launch took place. Two years after the first beta run, 15,000 kilometers away from India, WhatsApp Payment actually saw the light of day. It's 15 June this year and Mark Zuckerberg announced the launch of the service in Brazil's second-largest WhatsApp market.

“Today we’re starting to launch payments for people using WhatsApp in Brazil. We’re making sending and receiving money as easy as sharing photos”

With the difference that this time the service will be supported by Facebook Pay, which will allow 120 million Brazilian users to send and receive money free of charges. Business owners will have to pay a 3.99% fee at the receipt. Due to some issues, WhatsApp Pay is suspended in Brazil.

In order to use WhatsApp, Pay, a user must make a payment to a contact. If the request has been sent, the user will set up their UPI account on WhatsApp. Users can transfer money directly via chat by clicking on the sharing file icon and choosing 'Payment'. The 'payment' segment is available in the shortcut menu. Users can review their purchase history and account information in this section. The payment mechanism operates under the Unified Payments Interface (UPI) process, where the transfer of funds can be initiated without the need to include bank account numbers and IFSC receiver codes. WhatsApp Pay requires users to transfer money only to their contacts after which UPI ID is allowed. WhatsApp Pay users can enter the UPI ID to send money. Using QR code, users of WhatsApp may also transfer money to people who are not on their contact list.

There is no question that the goal is to carry the service to other nations, even if we cannot know exactly where or when. Indiscretions saw WhatsApp develop several things before providing a service to European countries, in particular, Spain tends to be the next area for the feature to be offered, and British consumers could see the payment button on their app by 2021.

Summary

I always support those methods which make transaction or payments easily.

WhatsApp should consider the below points before launching WhatsApp Pay in different countries

a) There should be a limitation in the transaction means WhatsApp should make limits for every type of users (businessman or any person)

b) In every payment method, security is a big issue. WhatsApp should design a security process that makes this payment method secure from hackers. Payments will include the use of six-digit code or fingerprints, such as the Facebook Pay PIN and biometrics.

Although, this is better innovation in the field of Payments. WhatsApp should start working with different big banking organizations to join with this platform, so it will help in launching this method in different regions. This feature is supported by UPI in India, first by Facebook Pay, then Cielo, and soon by PIX in brazil. This means that WhatsApp follows a transparent, scalable platform and is likely to see more firms enter, based on what suits each country best.