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Cashback promotes an increase in WhatsApp Pay transactions using UPI.

WhatsApp is introducing a reward function for its users to boost its payment gateway. The feature gives customers cashback on UPI payments made using WhatsApp. The functionality is accessible for iOS and Android users. However, it is currently only available to beta testers and not all users that utilise payment. The app has not stated when this functionality will be available to all users.

21st June 2022
Cashback promotes an increase in WhatsApp Pay transactions using UPI.


WhatsApp is introducing a reward function for its users to boost its payment gateway. The feature gives customers cashback on UPI payments made using WhatsApp. The functionality is accessible for iOS and Android users. However, it is currently only available to beta testers and not all users that utilise payment. The app has not stated when this functionality will be available to all users.

Since it began aggressively delivering cashback to customers in the last few weeks, the service has resulted in a considerable increase in daily transaction counts – to 2-3 million payments every day, up from several hundred thousand until recently, according to persons briefed on the topic. Though WhatsApp Pay has been operating on UPI for some time, it recently began actively providing cashback after being granted permission to scale the business to 100 million users.

One of its most recent consumer offerings includes a one-day promotion of up to Rs 105 payback in three instalments for sending Re one or more to various contacts. While the cashback-infused jump in transactions is notable for WhatsApp, it will be crucial to see how these volume spikes hold up without cashback or other incentives, according to the people cited above.

UPI pioneers like Google Pay and PhonePe have traditionally depended on incentives to attract customers and encourage them to transact more on their platforms. As of April this year, PhonePe and Google Pay had roughly a 47 per cent and 34 per cent market share, respectively. WhatsApp Pay had a minuscule 0.04 per cent market share. WhatsApp Pay also concentrates on merchant payments, which might result in a more significant volume of transactions from existing and new users using the platform. It has begun onboarding merchants for UPI-based costs.

According to individuals familiar with the case, the popular messaging service platform had requested UPI manager National Payments Corporation of India (NPCI) clearance to take its payment system to all its users at once without any more cap.

WhatsApp, with 400 million monthly active users in the country, is considered a possible rival to the supremacy of Walmart and Flipkart-owned PhonePe and Google Pay.

WhatsApp's expansion is also considered essential for UPI, as the regulator prefers a diversified selection of UPI apps on the network for users rather than a growing reliance on two platforms.


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