WhatsApp introduced a service in June that allowed a select group of users to receive cashback of up to Rs 105.
In July, the volume of Unified Payments Interface (UPI) transactions on Meta’s messaging service WhatsApp fell sharply when limited-time cashback for customers was withdrawn.
The number of UPI transactions on WhatsApp fell to 6.18 million in July, down from 23.04 million in June, when cashback was introduced. According to data supplied by the National Payments Corporation of India, the value of UPI transactions on the app increased to Rs 502 crore in July from Rs 429.06 crore the previous month (NPCI). Furthermore, the volume of WhatsApp transactions in July remained higher than the 3.5 million recorded in May.
WhatsApp launched a service in June that allowed a select group of users to receive a cashback of up to Rs 105. “The cashback incentives were a trial program for a limited time.” “It is no longer active,” a reliable source told FE.
The NPCI approved UPI payments for an additional 60 million WhatsApp users in April, bringing the app’s overall payments user base to 100 million. The messaging app’s payments component became online in November 2020 for 20 million users, and the user cap was raised to 40 million in November 2021. Because of its delayed launch, WhatsApp has fallen behind major companies like as PhonePe and Google Pay in the UPI race.
In the UPI race, WhatsApp has slipped behind big players such as PhonePe and Google Pay. In terms of transaction volumes, its market share in July was under 0.1%, down from 0.4% in June. In terms of value, its share increased to 0.05% from 0.04% the previous month.
With 3 billion transactions and a volume share of over 47% in July, PhonePe is the leading UPI app, followed by Google Pay, which logged 2.13 billion transactions during the month, accounting for roughly 34% of UPI volumes.
Also, Read about Digital Payments For Q1 2022 in India by Worldline