WhatsApp announces cashback to unseat competitors in India

By admin

A cashback program is expected to be launched by WhatsApp, in India, as a way to attract more merchants and partners in the country that has high demand to improve the access rates of the messaging app. The idea is to earmark cashback rewards to attract more Indians to its peer-to-peer payments service as a way to differentiate itself from competitors such as Google.

Regulatory approval

The cashback announcement comes after WhatsApp gained regulatory approval to double its payment offering to 100 million users in India, its biggest market, with more than half a billion people using the app. WhatsApp will launch before the end of May a refund offer of up to 33 Indian rupees ($0.40) for transfers users make on its payments service, which allows contacts to send funds to each other from the WhatsApp app. posts. The incentive, divided into three transactions, will be given regardless of the amount to be transferred, even if it is just 1 Indian rupee. WhatsApp’s refund amount might seem small, but Neil Shah, vice president of research at Counterpoint Research, said it would be a “compelling enough” reason for users to switch.

In a statement, WhatsApp said it is “running a campaign offering incremental refund incentives to users with the aim of unlocking the potential for payments within WhatsApp itself.”

More payment services In a broader payments effort, WhatsApp is testing a program where it will distribute refund incentives to users who pay tolls, utilities and other bills directly from the app, according to sources heard by Reuters. WhatsApp also wants to test these incentives for those making mobile payments for Reliance Jio, India’s biggest telecom operator. Reliance is a partner of WhatsApp, whose parent company Meta Platforms Inc has invested $5.7 billion in the Indian company’s digital arm.

After an internal study that evaluated competition in India, WhatsApp realized that it needs to move beyond peer-to-peer payments as users use rival apps to make payments from merchants and accounts, which the study says will be a “proposal”. more attractive for users to switch” to WhatsApp. Competitors include Google Pay from Alphabet Inc, Paytm and PhonePe from Walmart.