What’s Up With Whatsapp Pay?

If you’re not a big fan of downloading a digital wallet for transferring money but at the same time, you’re not keen on using netbanking either then WhatsApp pay is your best bet. 

What is WhatsApp Pay and how does it work?

Just how you send images on WhatsApp you can now send money to your friends through it. Unlike a digital wallet that requires you to load money and then make a transfer, Whatsapp Pay is a direct bank to bank facility. These payments happen via UPI-Unified Payments Interface which is a payment system that allows instant real-time fund transfer through a mobile app (in this case WhatsApp is the app).  Apart from WhatsApp many banks have their own UPI enabled apps as well, likewise, Google too has a UPI enabled app called Tez. 

How do you set it up?

  • To set up WhatsApp Pay make sure you have the latest version of WhatsApp on your phone.
  • Then from settings click on the ‘Payments’ icon. After accepting the terms and privacy policy select your bank that you’ll be using to send and receive money. If your bank isn’t listed here you won’t be able to use this feature as yet.
  • On selecting the bank all accounts linked to your (Whatsapp) number will be shown. Pick an account from here and then verify the debit/credit card linked to the account.
  • Lastly, you’ll have to key in an OTP sent to your number and choose a UPI PIN, which you will use each time you transact just like you use an ATM pin.

To send money to someone click on the attachment button (through which you send songs, images & files), you’ll see a payments icon click on that.  Then you’ll need to enter the amount, put in your UPI PIN and accept to send the payment to the receiver. Via an SMS from your bank you’ll be notified of the transaction details Remember the receiver should also have the Whatsapp Payments feature otherwise the payment won’t go through and you’ll be alerted. You can use this in group chats as well and send money to a particular member there. 

And to receive money, WhatsApp will send a message to you, after accepting this you can check your bank details for a confirmation. 

Is it safe?

One advantage WhatsApp Pay has over Digital Wallets is that it doesn’t need to be linked with Aadhar so at least that information is safe. Secondly, WhatsApp on its own doesn’t process any financial transactions. It’s in partnership with ICICI Bank. Also, WhatsApp clearly states that it does NOT RETAIN” debit card details or the UPI PIN. So your bank details are safe but as for your payments, data not so much. Read on why….

Payments data is all your personal data such as where you’re shopping what you’re buying how much of it you’re buying, who you’re buying from etc.

Whatsapp Pay’s privacy policy clearly says that those who agree to the service agree to the company’s “data practices, including the collection, use, processing, and sharing of your information as described in our Privacy Policy and our Payments Privacy Policy, as well as the transfer and processing of your information to the United States and other countries globally where we have or use facilities, service providers, or partners, regardless of where you use Payments”. This means it might share your payments data with companies like Facebook, Instagram to target your social media feed based on your spending patterns.

P.S.- Also, beware of scamsters out there that will trick you by saying send Rs. XXX amount for blessings or for a lottery ticket. 

Apart from that Whatsapp Pay is great if you don’t want to download a separate app. Simply through WhatsApp, you can send and receive the cash. But the flipside is that this cannot be used to make payments to e-commerce websites such as Amazon or Zomato nor can it be used at a physical store!

If you’ve still got any questions feel free to ask us in the comments below!


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s