Meta has won a huge victory, as India eliminates limits on WhatsApp's payments service. The National Payments Corporation of India (NPCI) said on Tuesday that WhatsApp's payments capability can now be rolled out to all users in the country. This decision lifts the prior limit of 100 million users, allowing WhatsApp Pay to reach its vast user base of over 500 million in India.
WhatsApp Pay's expansion in India has encountered numerous regulatory challenges. The NPCI, oversees India's UPI (Unified Payments Interface) system. Initially limited the service's implementation in 2020 to 40 million customers. The maximum was later increased to 100 million in 2022. However, with this recent step, WhatsApp has acquired complete market access, indicating a significant shift in the regulator's approach.
India's UPI system has become the backbone of digital payments, processing more than 13 billion transactions per month. However, the market is strongly controlled by two fintech behemoths—Google Pay and PhonePe, which together account for more than 85% of UPI transactions. WhatsApp's foray into the payment business is an attempt to threaten its supremacy.

In response to concerns about market concentration, the NPCI recommended capping any single app's market share on the UPI network at 30%. However, this idea has been pushed back until December 31, 2026, providing firms like WhatsApp more time to compete.
The removal of restrictions is a triumph for Meta, which is looking to extend its presence in India's expanding digital payments sector. "We're committed to making WhatsApp payments simple, reliable, and secure," said a WhatsApp spokeswoman. As Meta seeks to compete with established players. The development of WhatsApp Pay is expected to disrupt the digital payment ecosystem in India.

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