WhatsApp’s new feature enables users in India to pay businesses directly within WhatsApp chats using various payment methods like cards, net banking, and UPI. This enhances the merchant-customer interaction and expands WhatsApp’s role as a commerce platform.
Earlier this year, the platform teamed up with Stripe, enabling users in Singapore to make payments to businesses directly through the app. Additionally, WhatsApp introduced merchant payment capabilities in Brazil in June.
WhatsApp initially introduced payment services in India in 2020. However, it faced significant competition from other digital payment giants like Google Pay, PhonePe (owned by Walmart), and Paytm, all of which have a strong presence in the UPI ecosystem.
Notably, WhatsApp Business has been generating substantial revenue for WhatsApp. Unlike some platforms that charge users directly through subscriptions or serve ads in chats, WhatsApp has relied on features such as automation and custom merchant messages to generate income.
Source: WhatsApp
In addition to facilitating payments, WhatsApp is working to enhance the in-app shopping experience through a feature called Flows. With this feature, users can complete tasks like selecting a seat on a flight or booking an appointment directly within the messaging app, enriching the overall user experience.