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  5. WhatsApp wants NPCI to increase its UPI cap, current limits prevent it from onboarding 95% of its userbase

WhatsApp wants NPCI to increase its UPI cap, current limits prevent it from onboarding 95% of its userbase

WhatsApp wants NPCI to increase its UPI cap, current limits prevent it from onboarding 95% of its userbase
Tech1 min read
  • WhatsApp has reportedly requested NPCI to increase its user cap for payments.
  • WhatsApp currently has a user cap of 20 million for its UPI payments offering.
  • NPCI is expected to increase the user cap in a phased manner.
Facebook-owned messaging app received approval from the National Payments Corporation of India (NPCI) to commence Unified Payments Interface (UPI) payments in India.

WhatsApp was allowed to onboard only 20 million users for its payments platform, which is substantially less than its user base of over 400 million in the country.

As per a Moneycontrol report, WhatsApp has now requested the NPCI to increase the user cap restriction on its payments platform. “WhatsApp has been requesting NPCI to increase the cap. The request is currently under review,” said a source aware of the development.

WhatsApp has been trying to compete with PhonePe and Google Pay, which are the existing leaders in UPI payments. The messaging app had recently announced an offer, providing a cashback of ₹51 for five transactions, allowing users to earn ₹255.

NPCI is reportedly considering increasing the user cap on WhatsApp payments in a phased manner. “NPCI is considering increasing the cap in a phased manner because it cannot handle the huge volumes that might come with removing the cap completely,” the source added.

It is likely that a complete removal of the user cap on WhatsApp may overwhelm NPCI, especially with such cashback offers being announced by the Facebook-owned messaging app.

WhatsApp has been pushing for payments in India and recently started testing a payment shortcut which allows users to send money right from the chat box.

The payments button is located right next to the attachments button in the text box in chats. Earlier, the payments button was hidden behind the attachments option.

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