WhatsApp’s e-payment strategy: Paytm seeks fair play

According to Deepak Abbot, SVP, Paytm, WhatsApp has custom-implemented Unified Payments Interface (UPI) system which is not secure and flouts norms laid out by the National Payments Corporation of India (NPCI) that has developed the UPI system.

“Our objection to WhatsApp’s UPI payments system is not about competition, but fair play. The company has custom-implemented UPI to affect the platform’s core principle of inter-operability,” Abbot said. “WhatsApp has also refuted the UPI mandate by not allowing customers to pay using Bank Account + IFSC or Aadhaar number and not issuing UPI QRs,” he added. 

According to Abbot, there is no “Request Money” feature or additional security measure like “App password” in the WhatsApp digital payment gateway.

Paytm founder Vijay Shekhar Sharma has also demanded a level-playing field for all UPI-based apps. According to sources, in the WhatsApp’s iOS beta app, one cannot send money to non-WhatsApp customers while in Paytm or other digital payment platforms, they can. Even in WhatsApp’s Android beta app, the option to send money to non-WhatsApp customers is well hidden behind six steps/screens, they added. 

“This measure by Facebook has made payments challenging for nonWhatsapp users,” Abbot said. 

BHIM-UPI branding isn’t used anywhere in WhatsApp while other digital payment platforms comply with the mandate. Any transaction in India needs three-step authentication to make online and mobile payment safe for consumer. “In the case of WhatsApp, this has clearly been ignored as one doesn’t need any password to login to the app, which put Indian users at great risk while they integrate their Whatsapp with their bank account,” the sources said. WhatsApp’s VP Neeraj Arora has already stepped down from Paytm Board, a position which he held since 2015.