Here's why WhatsApp is yet to start its payment service in India.

Here's why WhatsApp is yet to start its payment service in India.

One big area of concern around WhatsApp Payments relates to allowing a Facebook group company into the Indian payments ecosystem.

BENGALURU | NEW DELHI: The complete rollout of WhatsApp Payments in India is stuck in a limbo because of a lack of communication between key stakeholders. The National Payments Corporation of India (NPCI), which runs the Unified Payments Interface on which WhatsApp Payments is built, has not replied to specific queries raised by the ministry of electronics and information technology early this month.

The ministry’s concerns relate to whether the new UPI-based service conforms to RBI’s security and privacy rules. NPCI has not disclosed by when it is likely to give its approval for the formal launch of WhatsApp’s payments service. Also, there is a lack of clarity on whether WhatsApp Payments is fully compliant with RBI’s rules.

WhatsApp in February rolled out a beta version of its payments service with ICICI Bank for a limited number of users. “We need some letter from (RBI and NPCI) saying that (WhatsApp Payments) is fine,” said a MeitY official on condition of anonymity.

“...even if there is no letter, let them be satisfied and say that everything is fine and give the approval. That is where we stand,” said the official. “We have told (WhatsApp) very clearly that the ball is in the court of NPCI and RBI.”

WhatsApp needs to consult with banks, NPCI and RBI to resolve the matter since the ministry is not the authorising entity for this particular launch, he said. AlthoughNPCI has the final say on UPI-based applications, it has become difficult for the umbrella body for retail digital payments in India to green-light the full rollout of WhatsApp Payments without addressing the ministry’s concerns, said people familiar with the developments.

Read more on https://economictimes.indiatimes.com/industry/banking/finance/banking/npci-meity-still-not-in-same-whatsapp-group/articleshow/64772196.cms

This post is from https://economictimes.indiatimes.com