WhatsApp Pay is a UPI-based payment service that allows the user to send and receive money. Developed by the National Payments Corporation of India (NPCI), this in-chat payment feature allows the users to make transactions using their contact list in WhatsApp.
The WhatsApp Payment will allow the UPI-based transactions in a graded manner. Initially, the app will be available for 20 million UPI users in the country and will operate based on the multi-bank model. Further, the NPCI has introduced a cap of 30% on UPI transactions by third-party app payment (TPAP), beginning from January 1, 2021.
Using WhatsApp Pay, the user can send and receive money easily.
Similar to the way one sends and receives messages on the applications. Currently, WhatsApp is working with a few banks in India like State Bank of India, Axis Bank, ICICI Bank, HDFC Bank, Jio Payments Bank. The list will expand in the future.
All one needs to have is to have a debit card and a bank account. The user can make payments through WhatsApp Pay using a UPI supported application.
The WhatsApp Payment is available in 10 Indian languages. Users of both Android and iOS can get the latest version of the app on their smartphones.
WhatsApp Pay is an in-chat payment platform feature that allows its users to conduct financial transactions using their WhatsApp to their contact list. It is a UPI based payments service that allows its users to send and receive money. The WhatsApp Payment App was developed by the National Payments Corporation of India (NPCI).
It was first launched in India in February 2018 as a part of the trial run. Payments via WhatsApp were introduced under a partnership with the ICICI Bank. During the first phase, the payment wallet will offer payment services to 10 million users in the nation.
To enable WhatsApp Pay, the user should first initiate a payment to a contact. Once the request is received, the users can set up their UPI account on their WhatsApp. Here the payment system will work on the UPI method wherein fund transfers can be initiated without proving the bank account details and IFSC code.
The UPI interface will allow the users to make instant fund transfer using a virtual address known as Virtual Payment Address (VPA). In the case of WhatsApp Payments, the fund transfer process is easy, fast and can be done all around the clock 365 days in a year, without facing any hassles.
The social media messaging application has formally tied up with several leading banks in India to make the e-wallet available to its customers.
The users of WhatsApp Pay have to follow the below-mentioned steps to set up the account.
Step 1: In the case of Android devices, first open WhatsApp and click on the three dots found on the top right-hand side of the app. For iOS devices, first, click on the ‘Settings’ option found on the bottom right-hand corner of WhatsApp.
Step 2: Now proceed further and select the ‘Payments’ option and select ‘Add Payment Method’. The user will be asked to accept the WhatsApp Payment policies.
Step 3: Now click on ‘Accept and Continue’ to proceed further.
Step 4: Now the user will get a list of banks to select from through which they wish to make payments. Further, if the user has two bank accounts with one bank, then select the respective bank account using which you prefer to make the payments.
Do ensure that while selecting the bank account, the WhatsApp mobile number is linked to your savings bank account, as an SMS will be sent to the mobile number for verification purpose.
Step 5: Once the verification process is completed successfully, the user will be required to set up a UPI PIN for making further payments.
The users of WhatsApp have to follow the below-mentioned steps to send or transfer money to others.
Step 1: First select the contact from your WhatsApp contact list to whom you want to send or transfer money.
Step 2: Proceed further and open the Chat option and select the payment option. If in case, your selected contact does not use the WhatsApp payment option, then the user can transfer the money using the person’s UPI ID of any other payment apps like PhonePe, Google Pay, PayPal and so on.
On selecting the transferee’s name, you will receive a pop-up which states that the selected contact does not use the WhatsApp payment mechanism. Post this, you can select the ‘Send to UPI ID’ option.
One can even transfer money to other’s account using the ‘Scan QR Code’ option.
Step 3: After selecting the respective receiver, now enter the amount followed by UPI PIN.
Step 4: Post successful verification of PIN, the amount will be transferred to the receiver’s bank account.
There are two scenarios in which a receiver can receive funds through WhatsApp Pay. The first one is the receiver has WhatsApp Pay and in the second one, the receiver does not have WhatsApp Pay.
In case the receiver has WhatsApp Pay
Here the sender will transfer the money to the receiver through WhatsApp Pay. All that the receiver has to do is to follow the instructions above to transfer the money.
In case the receiver does not have WhatsApp Pay
In this case, if the sender does not have WhatsApp Pay, yet they can still receive money. All one has to do is to share your WhatsApp Pay UPI ID with the sender. On receiving the UPI ID, the sender will enter the details of WhatsApp Pay UPI ID on the other payment platforms like Google Pay, PayPal, PhonePe and so on to send you the cash. On receiving the funds, your WhatsApp Pay will show a notification of the receipt of the amount.
The users of WhatsApp Pay can send or transfer the amount to their existing contact, after which it enables UPI ID. The users of WhatsApp Pay can enter the UPI ID of the receiver and transfer the funds. They can also use QR Code.
Apart from using the UPI ID, QR Code, users can also send money to others who are not on their contact list using other payment platforms like Google Pay, PhonePe and so on.
Step 1: Firstly, open the WhatsApp messenger app on your smartphone and now tap on the three-doted icon located on the top-right corner of the home screen.
Step 2: Now select the ‘Payment Option’ and the list of banks will appear on your phone.
(Please Note: Here the user can only select the bank account which is linked with the existing mobile number which is registered with WhatsApp).
Step 3: Proceed further, now the user will be asked for UPI PIN, if in case, the user already has a UPI account, enter the relevant details and proceed further. If the user does not have a UPI account, you will have to verify your account details by submitting the relevant debit card details.
Step 4: Once all the above-mentioned steps are completed successfully, the user can transfer or send money or even receive money using WhatsApp Pay.
1. What is the procedure to accept payments via WhatsApp?
WhatsApp is a UPI based payment application and hence the WhatsApp number should be the one that is linked to the bank account of the individual. Apart from this, the bank account should have UPI option support as well.
To enable the services, the users must use the payment option which can be found in the WhatsApp settings.
2. What is the maximum amount which can be transferred using WhatsApp?
The user can transfer a maximum amount of Rs 1,00,000 per day and even the government of India has set a threshold limit of a maximum amount of Rs 1 lakh for transfer using WhatsApp Pay.
3. Is the WhatsApp Payment Secure?
As the transfer of money via WhatsApp Pay is done using UPI payments system, using WhatsApp Payment is secure.
4. How safe is WhatsApp Pay?
The WhatsApp payment data is protected from fraud and abuse. The app helps its users to enable safe transactions and it also offers customer support. The services provider for WhatsApp Pay is done by Facebook and the payment structure is safe and secure.
5. What are the steps involved to set up WhatsApp Pay UPI?
The users of WhatsApp Pay have to follow the below-mentioned procedure to set up WhatsApp UPI:
6. Does WhatsApp Pay use the users UPI PIN?
No, after the user makes the WhatsApp payment, it will send the encrypted UPI PIN to the bank partners known as payment service providers. WhatsApp cannot see nor stores the UPI PIN, as it is encrypted by the software provided by the National Payment Corporation of India. Apart from this, WhatsApp cannot store other sensitive payment information like one-time password, debit card details or account number.
7. Who does WhatsApp send information to?
Whenever the user makes payments, WhatsApp creates the necessary connection between the sender and the recipient of the transaction using the Facebook infrastructure. The transaction information will be passed on to the bank partners, known as a payment service provider (PSP) and to the National Payment Corporation of India (NPCI). The information will be sent to these two agencies so that they can facilitate the movement of funds between the bank accounts of the sender and receiver.
Facebook does not use the WhatsApp payment details for any commercial purpose, it helps to simply pass on the necessary payment information to the bank partners and NPCI.
Sometimes, they may share limited data to help the customer support the user or to keep payment safe and secure.