WhatsApp has announced commencing in-app digital payments in India. In this case, WhatsApp users will transfer money to family members or share the cost of goods from a distance without having to exchange cash in person.
The payment feature on WhatsApp is in partnership with the National Payments Corporation of India (NPCI) using the Unified Payment Interface (UPI). WhatsApp says the latest development is in line with India’s quest to increase the ease and use of digital payment and expanding financial inclusion.
UPI is India’s state owned real time payment system that enables transactions with over 160 supported banks. WhatsApp payment feature is collaboration with five leading Indian banks: ICICI Bank, HDFC Bank, Axis Bank, the State Bank of India, and Jio Payments Bank.
The social media firm says that users sending money in India require a bank account and debit card. When a user wants to send a payment, WhatsApp sends instructions to the banks that initiate the transfer via the UPI system between the sender and receiver bank accounts. The receiver must be using a UPI supported app to get the payment.
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