WhatsApp’s new QR code payment feature might spell trouble for Paytm, FreeCharge

Facebook-owned WhatsApp is no more just a ‘messaging app’. Starting off with just allowing users to send messages and photos, the portal, over the years, has introduced Snapchat-like Status features, in-app YouTube playback, voice and video calls and most recent, WhatsApp Payments.

And now, WhatsApp has introduced a new QR feature that will allow users to transfer money with ease. At the moment, this feature is in beta version. This is an addition to the 'Send to UPI ID' feature which was added some time ago

This new QR feature is already available with e-wallet apps such as Paytm, FreeCharge, Mobikwik and others in India. But after it arrives on WhatsApp, most people might favour to use this portal to make money transfer over the other apps. Additionally, the new payment feature will attract more users, and in turn, give a boost to the government's Digital India initiatives.

The new feature is available via the Google Play Beta programme on WhatsApp version 2.18.93. Android Beta users will need to go to Settings > Payments > New Payments > Scan QR code. You can now be directed to the QR code option and you can enter the amount you wish to transfer.

The recent launch of WhatsApp Pay, the new payment service is creating discomfort among local payment services in the country, including Paytm. Paytm founder and CEO Vijay Shekhar Sharma took to Twitter to state how this new feature would kill the “open UPI system with its custom close garden implementation.”

In conversation with Economic Times, Vijay Shekhar Sharma said, “Facebook is openly colonising our payment system and is customising UPI to their benefit. UPI was built as an India Stack, now some American monopoly arm-twists UPI for customer implementation.” India Stack is a basic set of codes which have been developed around Aadhaar, and can be used to develop digital solutions.

However, domestic players believe that companies such as Google and WhatsApp have been granted exceptions and flexibility to get them on board the UPI platform while they have been compelled to follow all guidelines.

In India, WhatsApp is stated to help almost 80 percent of small businesses to help communicate with customers and grow their businesses as well.

The app will provide features such as auto responses, creating a business profile, chat migration and analytics. Users will also be able to register a landline number for WhatsApp Business. This seems to be a great move as most people would not like to share their personal contact number with customers. Businesses can also set ‘Away’ automated responses, which customers will receive while when they are trying to contact you and you are not available.