India has removed a cap on WhatsApp Pay, allowing Meta’s payments service to expand to all 500 million users in its largest market.
Previously limited to 100 million users, the change marks a significant victory for Meta as it seeks to challenge entrenched fintech leaders like Google Pay and PhonePe.
Why it matters
- Regulatory shift: The National Payments Corporation of India (NPCI), which oversees the country’s UPI payments system, had previously imposed strict limits on WhatsApp Pay’s rollout, citing the need for a cautious approach.
- Fintech competition: India’s UPI platform processes over 13 billion transactions monthly, but Google Pay and PhonePe dominate, accounting for more than 85% of the market.
State of play
The expansion for WhatsApp Pay coincides with NPCI’s decision to delay a proposed rule limiting any app’s share of UPI transactions to 30%. Initially slated to take effect in 2024, the cap has been postponed to December 31, 2026.
The big picture
Meta’s ability to fully scale WhatsApp Pay could challenge the current duopoly, introducing more competition in India’s booming digital payments space.
However, with the delayed market cap rule, Google Pay and PhonePe maintain their dominance for now.
What’s next
As Meta leverages WhatsApp’s massive user base, the focus will be on how quickly it can gain traction in a market shaped by existing giants and evolving regulatory landscapes.
Source: Techcrunch
