WhatsApp recently rolled out money transfer service in India. Users can now link their bank account to their WhatsApp account via Unified Payments Interface (UPI) and begin making payments straight to another user’s bank account through a WhatsApp chat. The feature is currently available only for beta users.
WhatsApp Money Transfer
To use this feature, you have to go in WhatsApp settings and set up a bank account link with UPI using the phone number linked to the bank account. Now to send money to your contact, tap the attachment button, a grid will open containing gallery, send a contact, share location and Payment options etc. Select payment to transfer funds to other accounts.
This will work only if sender and recipient are using WhatsApp with money transfer enabled. UPI is a digital inter-bank peer-to-peer fund transfer system developed by the National Payments Corporation of India (NPCI). The NPCI has its own UPI-enabled payments app called BHIM.
One major point to note is that the feature is not available for WhatsApp Business yet. In future, you might even able to use WhatsApp UPI to pay on third party sites.
The new feature will directly compete with Paytm which is India’s most popular mobile wallet. Last November, Paytm introduced chat feature in its app. Some other popular apps include Tez by Google and PhonePe. It will be interesting to see how these wallets will compete with WhatsApp which has over 200 million active users (only India).