Manage Money

WhatsApp Payment - a Simple Way to Send and Receive Money
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Last week I overheard a couple of teenagers at the mall...

Boy 1: "Hey, you owe me 2000 bucks."

Boy 2: "Oh no! I don't have cash..."

Boy 3: "Chill, man. Use WhatsApp payment to send the money to him, and you're sorted."

WhatsApp is at everyone's fingertips - literally as well as figuratively! WhatsApp not only keeps our fingertips busy in texting all day but has also brought the entire world at our fingertips. Whether it's instant messaging or free calls or sharing photos or even peer to peer money transfers - WhatsApp lets us do all of these and more. It has crept into the lives of people across all age groups and has become an indispensable part of our lives. WhatsApp Payment is the latest addition to the treasure trove of WhatsApp features that lets users transfer funds through the app. This new digital payment feature is sure to become a huge success.

whatsapp Payments

WhatsApp - A Brief History

It's a texting app with a plethora of exciting features. This wonder app was developed in 2009 by two former Yahoo! executives called Jan Koum and Brian Acton. It was launched as an ad-free mobile app that allowed users to send unlimited messages to their contacts. A decade ago, when WhatsApp was launched, it served as a mind-boggling alternative to the traditional text-messaging platform. WhatsApp has over a billion active users with nearly 55 billion messages being exchanged daily! No wonder Facebook shelled out a whopping $19 Billion to acquire WhatsApp in 2014. The customer pool of WhatsApp is expanding with each passing day.

What's WhatsApp Payment?

At the beginning of 2018, WhatsApp rolled out a jackpot feature for its Indian users: WhatsApp Payment. This feature allowed Indian users to transfer money directly from their bank accounts to another bank account without the need to use any bank account number or other account-related information. It's a quick and swift way of peer to peer money transfer directly between bank accounts, without having to store the balance in a wallet. A couple of clicks while chatting on WhatsApp is all you need to transfer funds nowadays. WhatsApp created history by initiating this feature as it is the first messaging app to come up with a fund transferring option. WhatsApp Payment has enhanced the convenience of their users to baffling heights!

How Does WhatsApp Payments Work?

WhatsApp uses the BHIM UPI platform to enable fund transfers. UPI or Unified Payments Interface was launched by the Government of India in 2016, with an aim towards digitally empowering the Indian society. It is a digital platform that allows a user to conduct instant financial transactions between accounts of participating banks under a single roof. All UPI-based instant digital payments applications enable money transfers using just a mobile number and a UPI PIN. WhatsApp retrieves the account information linked with a particular mobile number in a masked manner. It doesn't have access to the details of the bank account. The transaction happens entirely over secure banking networks authorized by the RBI, and WhatsApp can neither store the information nor use it for any other purpose. Moreover, using the UPI PIN to authenticate the transaction guarantees an additional layer of security.

Activating WhatsApp Payment

Before you start using this extremely convenient feature, you need to first register for it. It's very simple.

  • Tap on the icon with three vertical dots present at the top-right part of your WhatsApp screen.

  • Go to "Settings' and select the 'Payments' option to add your bank account.

  • Remember that the same number that you use for WhatsApp mobile application should be registered with the particular bank account for this to work.

  • A list of participating banks will be displayed as you select "Add New Account."

  • Choose your bank and wait for the app to retrieve your bank accounts linked to your phone number.

  • If you already have an existing UPI ID linked to the phone number, you just need to select the bank account that you want to link.

  • In case you are a new UPI user, you need to register first by verifying the bank account using the debit card number and ATM PIN. An OTP will be sent to your registered phone number. Enter the OTP and then set up a UPI PIN to be used each time you transact.

  • You will be notified once the registration is completed.

Well, once your registration is successful, now you can proceed to send or receive funds through WhatsApp. You can register multiple bank accounts by following the same process.

Using WhatsApp Payments

Once you have registered for WhatsApp Payment, you can use this amazing feature to send and receive money with a few simple taps and clicks. Let's guide you through the process.

  • Open the chat window of the person whom you wish to send money to.

  • Click on the attachment option and select "Payments."

  • If the receiver has already registered for WhatsApp payments, then you can directly enter the amount.

  • Select the account from where the money is to be debited and click on "Send."

  • You will be asked to authenticate the transaction by entering your BHIM UPI PIN.

In case the receiver hasn't registered for WhatsApp payments yet, you can follow this procedure:

  • Tap on the icon with three vertical dots present at the top-right part of your WhatsApp screen.

  • Go to settings and select the 'Payments' option.

  • Tap on "New Payment."

  • You can manually enter the receiver's UPI ID and proceed with the payment process as mentioned above.

  • Alternatively, you can also scan the QR code on the receiver's phone if he/she is nearby and proceed with the payment process as mentioned above.

To Sum Up

WhatsApp's one-of-a-kind payment feature is sure to give a gigantic boost to the digital payment scenario in India. WhatsApp has an extensive user base in India, with over 200 million users actively using the app. These users are not only familiar with the WhatsApp platform but they also trust it. As the Indian Government is striving towards digitizing India's money market, WhatsApp Payment can be the perfect aid to realize this mission. Although there are several UPI-enabled digital payment platforms available, most of those require the users to learn the nitty-gritty of using a new software platform. WhatsApp, on the other hand, is a familiar and trusted platform offering a new feature that most users would be willing to explore. Moreover, the convenience of making financial transactions alongside texting, and the ease of access that accompanies it, is sure to make WhatsApp payments all the more appealing to the Indian crowd.
Well, WhatsApp has indeed made our lives easier with its array of exciting features.  So, the next time you need to transfer money to someone, just WhatsApp it!