NPCI lifts WhatsApp Pay's user cap: Know how to set up new account

The move is expected to have profound implications for WhatsApp Pay and the broader UPI market

The National Payments Corporation of India (NPCI) has announced a significant development for WhatsApp Pay by allowing the platform to extend its Unified Payments Interface (UPI) services to its entire user base in India. The decision, effective immediately, removes the previous cap of 100 million users that put a limit on the inclusion of new customers. With over 500 million users in India, WhatsApp Pay can now fully leverage its vast user base to enhance its presence in the competitive digital payments landscape.

  WhatsApp Pay will continue to adhere to all existing UPI guidelines and circulars for Third-Party Application Providers (TPAPs), according to NPCI.

  Background on WhatsApp Pay's UPI journey

 

WhatsApp Pay's journey began in 2020 when it was initially restricted to just one million users. The NPCI gradually increased this limit to 100 million by 2022 as part of a phased rollout strategy aimed at ensuring a smooth integration into the existing banking infrastructure.

 

Implications of the decision

 

The lifting of the user cap is expected to have profound implications for both WhatsApp Pay and the broader UPI market. By integrating UPI services into its messaging platform, WhatsApp aims to position itself as a formidable competitor against established players like PhonePe and Google Pay. As of November 2024, PhonePe held a dominant market share of approximately 47.8 per cent, while Google Pay accounted for around 37 per cent. In contrast, WhatsApp Pay processed only 51 million transactions during the same month.

 

Experts suggest with this new development, WhatsApp Pay can potentially increase its transaction volume significantly. The central government also announced on Tuesday a two-year postponement in enforcing market share limits for UPI transactions, offering significant relief to major platforms such as Google Pay and Walmart-backed PhonePe.

 

How to set up WhatsApp Pay

 

Open WhatsApp: Ensure you have the latest version of the app installed on your device.

 

Access settings: Tap on the three dots in the top right corner (Android) or go to the bottom right tab (iOS) and select Settings.

 

Navigate to payments: In the Settings menu, tap on Payments.

 

Add payment method: Select Add Payment Method and choose your bank from the list of supported banks.

 

Verify your number: Confirm that the phone number linked to your WhatsApp matches the one associated with your bank account. You will receive an SMS for verification.

 

Set up UPI: Follow the prompts to set up your Unified Payments Interface (UPI) account. If you already have a UPI ID, you can link it directly.

 

Link your bank account: Choose the bank account you want to link and tap done to complete the setup.