Many legal hurdles later, Whatsapp launched its own money transfer arena on November 5, 2020 named Whatsapp Pay. Its services will be initially offered to 20 million of a total of 400 million Whatsapp users.
1. UPI Based : Whatsapp Pay makes payments possible using Unified Payments Interface (UPI) just like applications like Google Pay and PhonePe. There will be no need for a Whatsapp wallet. Instead, one can use the money that is available in their bank accounts for transferring money to others. When one registers on Whatsapp Pay, a UPI ID will be generated using which payments can be made. The payment section on the app will contain each user’s unique UPI ID.
2. Registration : What one needs to register on the app and transfer money is a bank account and a phone number that is linked to the same account. The attachments icon on the bottom of the screen on Whatsapp will take one to Whatsapp Pay. To complete registration, the app will ask permissions to make and use phone calls as well as read messages. Then one must enable a UPI code and even the same code as what is used by the user for other UPI linked apps.
3. Use with other payment apps : If the person one is sending money to is not registered on Whatsapp Pay, one can send money using the latter’s UPI ID that is enabled on other apps like Google Pay, PhonePe or BHIM. If both users have Whatsapp Pay, transactions can be made using the phone number of the person one wants to send money to.
4. Indian Numbers only : However, Whatsapp Pay is solely for Indian phone numbers. It can be used only for Indian numbers that are linked to Indian bank accounts.
5.Charges & Transaction Limit : The application aids transactions upto Rs. 1,00,000 just like other UPI. Using UPI transactions is free of cost. Whatsapp has not yet enabled transactions directly via bank account numbers and IFSC code.