In a filing with the local regulator in India, WhatsApp, a Facebook - owned service, has declared that providing credit or loans is one of the main objects to be pursued by the company it in India.
The mobile payments market in India, which has attracted dozens of local and international companies in recent years, is still at a very early stage in the country, TechCrunch cited WhatsApp’s head in India, who see companies moving beyond just offering a way for people to send money to one another.
Nevertheless, WhatsApp has yet to receive approval from New Delhi for a nationwide rollout of Pay in India. Local media reports claimed earlier in 2020 that WhatsApp had started to expand Pay’s reach in the country in various phases.
So far, dozens of payment services in India have expanded to credit or online lending, in recent quarters. Indian startups such as Paytm, MobiKwik, and Flipkart’s PhonePe already offer credit to millions of users in India. WhatsApp’s expansion in mobile payments in India, estimated to grow to USD 1 trillion by 2023 (according to Credit Suisse), could create new challenges for local players.
Facebook ‘reaffirmed’ its commitment to India, as the social tech company invested USD 5.7 billion in Reliance Jio Platforms in April 2020 to acquire a 9.99% stake in the Indian telecom company.
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