The Indian government has lifted the 100 million user cap on WhatsApp Payment, allowing Meta to expand the service to its entire user base of over 500 million in India. This marks a significant victory for Meta as it strengthens its presence in India’s rapidly growing digital payments market.
The National Payments Corporation of India (NPCI), which oversees the Unified Payments Interface (UPI) system, announced the removal of restrictions on Tuesday, enabling WhatsApp to offer its payment services to all users across the country.
Regulatory shift
Initially introduced with a 40 million user cap in 2020, WhatsApp Payment’s rollout was gradually expanded to 100 million in 2022. The cautious approach by NPCI aimed to prevent market monopolies in India’s thriving UPI ecosystem, which processes over 13 billion transactions monthly.
This move represents a pivotal shift in regulatory policy, opening up new opportunities for competition in a market currently dominated by Google Pay and PhonePe, which together control over 85% of UPI transactions.
Meta’s strategic advantage
WhatsApp’s massive user base and seamless integration with its messaging platform position it as a formidable challenger to established players. The timing is also advantageous for Meta, which recently launched its generative AI product, Meta AI, in India, further strengthening its foothold in the country.
UPI market caps deferred
Along with lifting the user cap, NPCI has deferred a proposed rule to limit any single app’s share of UPI transactions to 30 per cent until December 31, 2026. This extension will provide WhatsApp with ample time to solidify its position in India’s competitive fintech landscape.
India: A key market for Meta
This development highlights the growing significance of India, as a global market for Meta, which will amplify its ambitions in financial services. With WhatsApp Payment now open to the user base, the social media company is poised to reshape the digital payments ecosystem in one of the world’s fastest-growing economies.
