WhatsApp’s 400 million users in India will now be able to pay for products and services through the chat app.

WhatsApp, under its parent company Meta (NASDAQ: META), is launching an in-chat payments service for businesses in India. This move aims to tap into the immense market potential of India and boost revenue for the messaging service. Users in India will now have the ability to make payments for products and services directly through WhatsApp.

The payment options include credit and debit cards, WhatsApp Pay, and India’s public digital payments network UPI. Notably, businesses will not incur charges for in-app payments, but Meta stands to benefit from increased business usage of WhatsApp, as they pay to communicate with their customers through the platform. (FT)

WhatsApp’s goal is to streamline the purchase process within chat conversations, making it more convenient for customers to make payments. This strategy is part of Meta’s broader effort to enhance e-commerce capabilities across its platforms, creating an additional revenue stream alongside advertising. Moreover, enabling merchant payments allows WhatsApp to gather more data for personalized advertising targeting.

This move mirrors similar initiatives in Singapore and Brazil, but India’s massive population makes it a significantly larger potential market. WhatsApp already boasts 400 million monthly users in India, positioning it as a contender among the top digital payment apps in the country.

WhatsApp’s importance to Meta’s revenue generation is evident, with companies being charged for marketing and customer service messages sent via the platform. Additionally, the integration of click-to-message ads has been a lucrative revenue source, reaching a $10 billion run-rate according to Mark Zuckerberg, Meta’s founder.

WhatsApp’s journey into business payments began with its investment in JioMart, a digital unit of billionaire Mukesh Ambani’s Reliance Retail, in 2020. The partnership saw the launch of the first in-app customer business payments service, leading to a substantial increase in JioMart customers within WhatsApp chats.

This announcement comes in the wake of India’s data protection bill, which passed recently. The legislation is viewed as business-friendly for tech companies, presenting monetization opportunities.

WhatsApp is also gradually introducing features for peer-to-peer payments in various markets, including India. However, regulatory hurdles have slowed its progress in this area. Critics argue that despite a robust product, WhatsApp did not aggressively market its peer-to-peer payment service due to a lack of intention to promote it.

Related Story: Singapore Businesses Can Now Pay From Within WhatsApp Courtesy Of A Tie-Up Between Meta And Stripe

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