WhatsApp rolls out money payment system in India after Brazil

NAIROBI, KENYA: WhatsApp has rolled out system within its app to enable people in India to send money through the messaging application.

A similar system was rolled out in Brazil mid this year allowing users to transfer funds to individuals or local businesses within a chat, attaching payments as they would a photo or video.

The Brazillian Central temporarily in June halted the system rollout citing competition, data privacy, and efficiency.

However in August according to Reuters, the Brazillian Central Bank said that tests had begun to trial payments via WhatsApp in the country, calling them an “important advance.”

People across India started using the payment system last week now being able to send money through WhatsApp.

"The system makes transferring money just as easy as sending a message. People can safely send money to a family member or share the cost of goods from a distance without having to exchange cash in person or going to a local bank."

WhatsApp designed the payments feature in partnership with the National Payments Corporation of India (NPCI) using the Unified Payment Interface (UPI), an India-first, real-time payment system that enables transactions with over 160 supported banks.

To send money on WhatsApp in India, it’s necessary to have a bank account and debit card in India. WhatsApp sends instructions to banks, also known as payment service providers, that initiate the transfer of money via UPI between sender and receiver bank accounts.

It currently works with ICICI Bank, HDFC Bank, Axis Bank, the State Bank of India, and Jio Payments Bank.

For Kenya, the implications of launching the service would be especially significant for Safaricom, which has maintained a firm grip on money transfer and digital payments through its flagship platform M-Pesa.

Facebook founder Mark Zuckerberg (owners of Whatsapp), visited Kenya to benchmark mobile money applications almost four years ago.