WhatsApp is planning to offer monetary benefits in the form of cashbacks to users to lure new customers into using its payments platform. At the same time, the social media giant is also testing it for merchant payments. This will enable WhatsApp to compete with its rivals, such as Google and PhonePe, which have a major market share in processing the volume of UPI transactions in India.
Much recently, the National Payments Corporation of India (NPCI) had bumped the limit of users WhatsApp could have for its payments service to 100 million. This was a big positive for the platform as it already has 400 million+ users in India leveraging the app for texting colleagues, friends, and more every day.
WhatsApp Will Give this Much Money to Users in India
According to a Reuters report, WhatsApp is all ready to offer up to Rs 33 ($0.40) as cashbacks to users for making transactions on its platform. Using WhatsApp Pay, users can send money to their contacts directly from the chat window.
There won’t be any minimum limit to how much money users will have to send to get this cashback from WhatsApp. The incentive will be spread over three transactions. Even if users are sending as little as Rs 1 to other users from WhatsApp Pay, they will be eligible for the transaction.
WhatsApp is mostly to drive user acquisition for online payments and make people aware that they can transact through its platform.
While the amount is not that big, it would still give many Indians a compelling enough reason to switch the platform to WhatsApp for making payments, said Neil Shah, Vice President, Counterpoint Research.
The company told Reuters that it is running this cashback campaign in a phased manner to unlock the potential of payments on WhatsApp. It is worth noting that this is not the first time that Whatsapp will be offering users cashbacks.