WhatsApp plans to enter Indonesia’s mobile payments market

WhatsApp plans to enter Indonesia’s mobile payments market


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For which $1 Trillion Mobile Payments Market did WhatsApp Pay just get a green light? 📲 📈 Check out the video to find out ▶\n\nA good month for Marc Zuckerberg, getting the green light for 2 markets with huge potential for mobile payments 💳\n\nIn this episode, Marek Buenting describes why WhatsApp Pay got the green light now and takes a deep dive into the $1 Trillion dollar market.\n\nTranscript: Very recently WhatsApp Pay got the green light to enter two markets which they have been wanting to expand into for a long time. The most recent being Brazil is predicted to become a mobile payments market estimated at rougly$151,942.3 million by 2025.\n\nWhy did they get approval now you may ask? Let’s look back at July when WhatsApp was actually halted by governmental regulators\n\n“Brazil’s Central Bank and antitrust regulator justified their decision with the goal to “preserve an adequate competitive environment.” and prevent a monopoly. \nHowever, the upcoming launch of the central bank’s own payments service, PIX, makes us wonder if there is a hidden motive to halt the WhatsApp Pay service.”\n\nFunny to look back at our first ever episode btw;)\n\nAnyway…. as of Monday the 16th of November, Brazil’s Real-Time Payment Rails (PIX?) went live with PIX, helping eCommerce companies in Brazil prevent costly processing delays. The instant payments platform debuted with 72 million registrations already (Source)\n\nAnd guess what….unsurprisingly, WhatsApp will soon get the green light too to start providing peer-to-peer (P2P) payment services in Brazil, Roberto Campos Neto; Head Of The Country’s Central Bank said at a press conference last Monday the 16th. (Source)\nSo WhatsApp is also getting another crack at grabbing a slice of Brazil’s fast-growing digital payments market supported by the high number of over 6 Million SMEs across the country.\n\nThe $1 trillion mobile payments market we mentioned earlier for which WhatsApp Pay also got a green light, is India.\n\nWhatsApp’s payments-rollout in India, early in 2018 quickly ran into a two-and-a-half-year regulatory drama, with concerns surrounding the usage of users’ payments data and more interestingly their expected competitive advantage.\n\nKeeping that in mind, it now seems as if the Indian regulator is using WhatsApp Pay to establish a balance in payments processed following its own NPCI’s announcement that it would be enforcing a cap on third-party apps to ensure no single app processes more than 30% of all UPI transactions. (source)\n\nCurrently, Google and Walmart are dominating the mobile payments market in India with an 80% UPI market share. This kinda proves that, even though the Indian government is strict and focused on avoiding any type of monopoly to be present, they are open to allowing foreign companies to their market.\n\nSo why is this such a big win for WhatsApp Pay?\n \nIndia is one of the most innovative and vibrant digital payment landscapes across Southeast Asia. They are among the top 10-biggest markets global and have experienced an 8-time growth to $4 Trillion in Digital Payments, since 2012.\n\nMore specifically the Indian Mobile Payments market Is one of the fastest-growing and hit $2 Billion processed transactions in Oct ‘2020m of which\n2/3rd are processed through PSPs.\n1/3rd through Peer to Business payments, which are made by 120Mio active users, across 5Mio active merchants\n\nIn short, India has a really large opportunity ahead of them and we expect them to be among the global industry leaders in digital payments.\n\nWhat your thoughts on WhatsApp Pay in India? Do you think WhatsApp Pay is, or will be, competing with the services of Ant Group and Tencent? Share your thoughts in the comments down below.

WhatsApp plans to enter Indonesia's mobile payments marketWhatsApp plans to enter Indonesia’s mobile payments market

The popular messenger WhatsApp is in talks with several Indonesian payment companies to offer their mobile transaction services. Thus, the company is trying to enter the country’s growing e-commerce sector..

Indonesia could become the second country in the world where WhatsApp will introduce a mobile payment service. Besides, regulatory approval pending in India, one of the company’s largest markets.

But unlike India, which plans to offer direct peer-to-peer payment services, in Indonesia, WhatsApp will serve as a platform supporting payments through local digital wallets due to tight licensing regulations.

Indonesia Model Could Become a Whatsapp Template for Acceptance in Other Emerging Markets to Bypass Rules for Foreign Players Setting Up Their Own Digital Wallets According to Sources.

Indonesia is one of the five largest markets worldwide for Whatsapp with over 100 million users.

According to some estimates, the country’s e-commerce industry could potentially grow to $ 100 billion by 2025. However, it should be borne in mind that local regulations governing digital payments are among the strictest in Asia..

WhatsApp is in talks with several digital payment firms including ride hailer Go-Jek, mobile payments firm DANA, and Fintech OVO, which is owned by the Indonesian conglomerate Lippo Group.

According to sources, deals with the aforementioned companies could be concluded in the near future.