In the next six months, WhatsApp Pay will acquire various India-first features, including cashbacks

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Given its massive user base in India, WhatsApp Pay has been seeking to take on its competitors Google Pay, PhonePe, and Paytm head-on. However, the regulator, the National Payments Corporation of India, has given the company a market cap of only 20 million customers in India (NPCI). Even though the NPCI has upped the cap to 40 million users, this represents only 8% of WhatsApp's overall user base in the country, which is estimated to be 500 million. WhatsApp Pay, on the other hand, has a market share of less than 1%, while its competitors PhonePe and Google Pay have market shares of 46 percent and 34 percent, respectively.

A method that prioritizes India 

To keep up with its competition, Meta-owned WhatsApp is aiming to invest heavily in its payment services in India to accelerate its growth. 

A substantial portion of the investment is likely to go toward cashback offers to users who transact through its platforms as part of its India-centric strategy. WhatsApp was recently discovered to be paying 51 cashback for the first five transactions made by its users.

Cashbacks have also aided the growth of services like Google Pay and PhonePe in India. Aside from the cashback, WhatsApp has also incorporated a payment sign in its chats. Users can even scan QR codes with the camera button in the chat composer. According to Manesh Mahatme, WhatsApp India's head of payments, the firm plans to spend heavily on WhatsApp Pay in India, including various India-first features, to speed growth. 

There is a decrease in trust

According to a TechRadar article, WhatsApp's perception will make it difficult for it to compete with Google Pay, PhonePe, and Paytm. According to a fintech specialist, people are less trusting of WhatsApp when it comes to financial transactions. 

As a result, a major focus of the substantial investment in India will be on strengthening the company's image and instilling trust in its customers so that they will use WhatsApp Pay for transactions.

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