Meta Platforms, the parent company of WhatsApp, is expanding payment options on the app in India to boost revenue and attract businesses. This move aligns with the trend of superapps and aims to simplify the payment process for users.
Troy D. Hanson
September 20, 2023
Meta Platforms, the parent company of popular messaging application WhatsApp, is making efforts to increase its revenue from the platform by expanding the range of payment options available to users in India, the largest market for the app. This move could potentially be extended to the global userbase of WhatsApp.
Under this new development, Meta will allow credit card payments and other services from rival companies within WhatsApp in India. While Meta does not disclose financial results for WhatsApp specifically, the company has emphasized its potential as a communication channel between businesses and customers. By expanding WhatsApp as a payments channel, Meta aims to attract businesses who would be willing to pay for access to its user base, thus boosting the app's profits.
Currently, the number of Indian users utilizing WhatsApp Pay is limited to 100 million. However, through partnerships with local fintech rivals Razorpay and PayU, Meta intends to enable a larger portion of its 400 million users in India to purchase products and services directly within the app. This seamless payment experience aims to simplify the process for users and enhance the overall functionality of WhatsApp.
Meta's move aligns with the trend of "superapps" in countries like India and WeChat in Asia, where mobile devices serve as an introduction to internet services. By transforming WhatsApp into a one-stop-shop mobile app, Meta aims to offer a wealth of features and services to cater to users' diverse needs.
It is worth noting that Meta is not the only Western company pursuing the superapp model. Elon Musk has expressed interest in transforming his platform, formerly known as Twitter, into a combination of a financial platform and social network. Additionally, Meta already offers WhatsApp payment options in Brazil and Singapore.
Meta shares remained relatively stable during premarket trading on Wednesday.