WhatsApp is starting lending and insurance with a number of users that Paytm, PhonePe and Amazon took years to build
- The financial services plans could give the instant messaging app over 200 million new users, adding to its existing 400 million user base in India.
- But with the move, WhatsApp becomes a direct competitor to the existing players in India – Paytm (backed by Alibaba and SoftBank), PhonePe (backed by Walmart) as well as
At a time when digital payments are on the rise, given the pandemic enforced lockdown, the future for 'Digital India' looks bright and companies are looking for gateways to cash in on this. Facebook owned messaging app, WhatsApp is the latest entrant - driving its financial inclusion push in India with its foray into lending, micro-insurance, and micro-pension products. Abhijit Bose, WhatsApp India head, shared the plans for the company’s foray into financial services in India at the Global Fintech Festival.
View all Offers
View all Offers
OnePlus Nord 2 5G (Gray Sierra, 8GB RAM, 128GB Storage) I Extra upto Rs.1000 off on Exchange₹ 29999Buy On
- 19% OFF
Redmi Note 10 (Aqua Green, 4GB RAM, 64GB Storage) -Amoled Dot Display | 48MP Sony Sensor IMX582 | Snapdragon 678 Processor₹ 12999₹ 15999Buy On
OnePlus Nord 2 5G (Blue Haze, 8GB RAM, 128GB Storage) I Extra upto Rs.1000 off on Exchange₹ 29999Buy On
- 18% OFF
Redmi 9A (Nature Green, 2GB RAM, 32GB Storage) | 2GHz Octa-core Helio G25 Processor | 5000 mAh Battery₹ 6999₹ 8499Buy On
- 18% OFF
Redmi 9 (Carbon Black, 4GB RAM, 64GB Storage) | 2.3GHz Mediatek Helio G35 Octa core Processor₹ 8999₹ 10999Buy On
Bose added that WhatsApp is already in talks with the likes of ICICI Bank, Kotak Mahindra and HDFC to explore its financial services foray in India. WhatsApp is currently running pilot programs for the same. “Based on the results, we will co-invest and scale. Even a small conversion of the demand will translate into an infusion of significant savings into the financial system,” said Bose.
TOP VIDEOS FOR YOUWith the move, WhatsApp becomes a direct competitor to the existing players in India – Paytm (backed by Alibaba and SoftBank), PhonePe (backed by Walmart) as well as Amazon. Paytm has recently announced its
AdvertisementWhatsApp’s payments entry is with 400 million users
WhatsApp already has a competitive advantage over the other players in the ecosystem as it comes with an existing 400 million user base. Moreover, WhatsApp’s partnership with Reliance Jio will only power its growth.
India is one of the biggest markets for WhatsApp and the app is only looking at increasing its reach in the country. WhatsApp’s financial plans outlined for the next 18 months, have the capability of giving the instant messaging app an additional 200 million new users.
But this could threaten the players who have been around for longer and have been steadily building their players.
11-year old Paytm’s parent company One97 communications has over 700-800 million users overall, a source had told Business Insider. Meanwhile, five-year old PhonePe claims to have 200 million registered users. Amazon’s user data is not publicly available.
WhatsApp Pay has been in the testing mode in India since 2018, and has been caught up with regulatory hurdles. But it's bank of already existing users (through WhatsApp), will make it easier for it to conquer the market. According to Bernstein’s hypothesis, WhatsApp has already garnered 10.7% of the market in the first phase of rollout since the approval came in February. The subsequent phases will be much bigger and a lot more competitive.
AdvertisementAnalysts at Bernstein expect WhatsApp Pay’s penetration to increase to 30% (from the current 10%) by FY25.
“Payments remains the missing link, the tie up could be a potential game changer with WhatsApp Pay integration with JioMart,” said the report by Bernstein.
Flipkart buys Walmart’s India business - 'kirana stores' network to bolster e-retail play
Indian public sector bank employees get 15% wage hike and performance-linked incentives after three years of waiting
- Fino Payments Bank files papers for ₹1,300 crore IPO
- OfBusiness, a platform that helps SMEs get raw materials, becomes the newest unicorn from India
- Tokyo Olympics: India's P V Sindhu loses to world number one Tai Tzu Ying of Chinese Taipei in the semis
- Droom founder explains why he is considering a US IPO and where he intends to spend the money
- 21 new COVID-19 cases reported at Tokyo Olympics, no athletes among them