India has lifted restrictions on WhatsApp’s payment service, marking a key win for Meta in its largest user base as the social media giant seeks to compete with established fintech players.
The National Payments Corporation of India (NPCI), which oversees the widely used UPI payment system, announced on Tuesday that WhatsApp is now permitted to expand its WhatsApp Pay service to all users in India.
With over 500 million users in the country, this move removes the previous cap of 100 million users.
This decision reflects a shift in the regulator’s previously cautious stance on WhatsApp’s payment ambitions.
In 2020, the NPCI had limited the service to 40 million users, raising the cap to 100 million in 2022.
WhatsApp’s expansion comes as India’s UPI platform, handling over 13 billion transactions monthly, faces concerns over market concentration.
Google Pay and Walmart-backed PhonePe currently dominate more than 85% of UPI transactions.
On Tuesday, the NPCI delayed a proposal to impose a 30% cap on any app’s share of transactions on the UPI network. The rule will now not be implemented until December 31, 2026.
“We are committed to making payments on WhatsApp simple, reliable, and secure,” a WhatsApp spokesperson said in a statement sent to TechCrunch.
“Our goal is to enhance user convenience through various services like bill payments, ticket booking, and shopping.
We aim to boost digital payments and UPI adoption, contributing to India’s digital and financial inclusion efforts.”