Millions of WhatsApp users in India can now make in-app payments for products and services, a move by parent company Meta Platforms Inc
Businesses can accept payments through credit and debit cards, WhatsApp Pay, and India's digital payments network UPI.
Meta will likely benefit from increased business engagement on WhatsApp, as companies pay to message their customers, the Financial Times reports.
Previously, CEO Mark Zuckerberg had emphasized transforming WhatsApp's massive user base into a significant source of revenue.
Their focus remained on attracting more large businesses worldwide to utilize WhatsApp for customer interactions, with companies paying varying fees per conversation based on the chat type and country.
The actual value of WhatsApp to Meta remains uncertain, with estimates placing its revenue between $0.5 billion - $1 billion.
The value of digital payments in India will likely increase threefold from the current $3 trillion to $10 trillion by 2026.
WhatsApp's expansion into in-app payments mirrors similar initiatives in Singapore and Brazil, but India's sheer size and population make it a potentially more significant market.
WhatsApp has 400 million monthly users in India, positioning it to become one of the top digital payment apps in the country.
This move facilitates e-commerce and provides Meta with more user data, enhancing its ability to personalize advertising and marketing efforts.
WhatsApp has become increasingly crucial for Meta's revenue generation. Companies are charged for marketing and customer service messages delivered through WhatsApp and for running click-to-message ads on Facebook and Instagram that direct potential customers to WhatsApp chats with businesses.
Zuckerberg noted that click-to-message ads had reached a $10 billion revenue run rate.
WhatsApp's foray into in-app payments began with the launch of JioMart's customer business payments service within WhatsApp last year. The initiative has been successful, with a significant increase in customer shopping on JioMart via WhatsApp.
However, WhatsApp's journey into peer-to-peer payments faced regulatory hurdles in India, where concerns over data storage slowed progress.
Despite clearing regulatory obstacles in 2020, WhatsApp's peer-to-peer payments feature in India faced slow adoption due to limited marketing efforts.
Price Action: META shares traded higher by 0.03% at $305.15 premarket on the last check Wednesday.
