As we all are aware of Whatsapp, its used to send and receive texts and visual messages. Everthing was working fine until Whatsapp Realises that they need a breakthrough so they introduced File Sharing system as well. Now, with the apps like PhonePe and BHIM, the use of Whatsapp has become redundable and they thought of including payment options as well. So here, I'm going to tell you all about Whatsapp and BHIM payment transaction:
But wait, for knowing all about Cashless payments through UPI, we must know what is BHIM?
What is BHIM (Bharat Interface for Money)?
BHIM (Bharat Interface for Money) is a Mobile App developed by National Payments Corporation of India (NPCI), based on the Unified Payment Interface (UPI). It was launched by Narendra Modi, the Prime Minister of India, at a Digi Dhan mela at Talkatora Stadium in New Delhi on 30 December 2016. It has been named after Dr. Bhimrao R. Ambedkar and is intended to facilitate e-payments directly through banks and as part of the 2016 Indian banknote demonetisation and drive towards cashless transactions.
The app supports all Indian banks which use that platform, which is built over the Immediate Payment Service infrastructure and allows the user to instantly transfer money between the bank accounts of any two parties. It can be used on all mobile devices.
Whatsapp Integration with BHIM:
A senior official in the Indian government has confirmed, via Twitter, that the soon-to-be launched payments system from WhatsApp would integrate the Unified Payments Interface (UPI) developed by the National Payments Corporation of India (NPCI).
The world’s most popular messaging application’s decision to use locally-designed architecture to send and receive money is momentous for reasons both technological and strategic. WhatsApp relies on the address books of users to send and receive messages, images or calls, so it could well have deployed an in-house mechanism to make digital payments from one phone number to another.
Indeed, the Chinese messaging application WeChat has engineered exactly such a system – WeChat Pay – relying on user contacts and scanned QR codes to effect payments.
Are UPI Payment Transactions Really Secure?
Whatever that address may look like, the UPI interface ensures the “address resolution” happens through a number of public markers: phone numbers, account numbers and IFSC codes, RuPay card numbers and possibly even Aadhaar numbers in the future.
WhatsApp could probably effect payments through phone numbers or Facebook contacts if it wanted to – the way its parent company has, by building a system from scratch and using Visa and MasterCard debit card information – but its use of the UPI interface is an acknowledgment of these government-identified markers. At a time when governments across the world are increasingly tightening their control over the internet, the WhatsApp-NPCI arrangement could be billed by India as its own variant of “cyber sovereignty”.
Why Whatsapp has chosen UPI?
WhatsApp has instead chosen to adopt a homegrown product, and a UPI-driven platform will allow it to make payments through other personally-identifiable markers: Aadhaar numbers, account number/IFSC code and so on. It is yet unclear how the payment interface will be integrated into WhatsApp. WhatsApp has two options before it: in the manner of a PayTM, WhatsApp could fashion itself a digital wallet and link it to UPI addresses. But given this would necessitate an RBI license and would be a rather minimal use of the UPI interface, WhatsApp is likely to adopt UPI-driven payments in the same way as the BHIM (Bharat Interface for Money) app, and potentially process transactions from all manners of IDs: phone numbers, Facebook contacts, bank accounts or even Aadhaar numbers. No matter what the final configuration, WhatsApp’s embrace of UPI will have lasting consequences for India’s digital economy.
WhatsApp’s adoption of a homegrown digital platform like UPI is also important for symbolic reasons. Silicon Valley suffers from an almost pathological determinism and irrepressible belief that technology designed in the Bay Area can offer solutions to most global problems.
WhatsApp, by integrating UPI into its platform, has signalled to Silicon Valley peers that the Indian digital economy can offer mature technological solutions that augment their own. This should be a cue for Y Combinator to pilot its universal basic income project in Indian cities through the UPI platform, blockchain players — including European companies like Guardtime — to offer commercially scalable solutions that limit pilfering of funds in public sector projects, and AI-based technologies to work with state governments for creating predictive tools in health diagnostics.