Paytm ready to compete as Whatsapp set to launch payment services

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Whatsapp, the biggest instant message platform in India will launch a digital payment service this month. It will allow its users to send and receive money.

The UPI based software will allow bank-to-bank digital payment. The app will be directly linked to their account. TheFacebook-owned Whatsapp is currently testing a beta version of its payment app.

The move has worried Paytm. Whatsapp has over 200 million users in India.

The country’s largest mobile payment service- Paytm came to rise when the Prime Minister Narendra Modi announced demonetization as a part of the anti-corruption measures in November 2016.

Vijay Shekhar Sharma, Founder of Paytm has accused Whatsapp of bypassing crucial payments norms that guarantee security of customers.

Earlier he had said that Whatsapp payment is not secure. The government has denied this.

Paytm says that Whatsapp is attempting a repeat of Free Basics. A senior official told the media,” Facebook tries to dominate the market – they go in with a mindset that they can lock the users in their system.”

The company has said that it is ready for the competition.

Other players in the Market don’t share the same opinion as there are others mobile wallets that exist in the country. Bipin Preet Singh, Founder of Mobikwik stated that currently, the digital payments are just 5 to 10 percent so the entry of a new player is a positive.

Paytm has about 300 million registered users in the country. Its daily transaction crosses over 4 million with supported services such as booking tickets for movies, travel, shopping including payments in restaurants.

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