SC deny giving permission for Payment business to WhatsApp
SC deny giving permission for Payment business to WhatsApp

If you watch news daily then you might be aware of WhatsApp and why it’s in headlines. My today’s article is for people who aren’t aware of what’s going on with WhatsApp. Let me first ask you a question-how many of you are aware of WhatsApp payment option? The news I’m talking about here is only related to WhatsApp payment option mode. Folks the matter is WhatsApp is not getting approval of SC for its payment business proposal in India. Why is it so? Why WhatsApp is facing such problem in getting approval for its payment option? What’s exactly the matter is? All your questions will be answered if you keep reading this article till the end.

So, let’s walk through the whole story of WhatsApp Payment mode

Let me tell you that Facebook owned messaging app WhatsApp has been operating its WhatsApp Payment in beta version for one million users since February 2018. As you know that this option is currently available in beta version so is not accessible to every WhatsApp user. However, now WhatsApp has raised concerns regarding the delay in getting an approval for its payment business proposal in India from Apex or Supreme Court (SC).

Let me share what RBI said in its response, it asked National Payment Corporation of India (NPCI) and the Ministry of Electronics and Information Technology (MeitY) to share their standpoint on the matter.

A senior official of the ministry in response to RBI’s letter said, “The concerns it had with WhatsApp Payments have already been raised with NPCI and RBI”.

Why WhatsApp not getting approval from SC?

Every country’s government concerns about securing the important or personal data of its citizens so that the information can’t be leaked or misused by anyone across the world. Keeping this mind, RBI on April 5, 2019, had said that all payment system operators will have to ensure that data related to payments is stored in India and firms would have six months to comply with it. And WhatsApp was also asked to not to store any mirror copies of the data outside of India, but WhatsApp didn’t compliant properly. NPCI has also maintained that WhatsApp isn’t fully compliant yet.

 According to Bloomberg report, the Ministry of Electronics and Information Technology (Meity) asked WhatsApp and its partner banks to provide more details about the payment system. The ministry also asked NPCI to check whether WhatsApp was fully compliant with its requirements or not.

What privacy policy WhatsApp updated for its payment mode?

Last June, WhatsApp updated its terms of service and privacy policy. WhatsApp shared some clarification which it collects through its payment service. The company said it has limited visibility on Indian consumers banking details and stated that it doesn’t have access to user’s UPI (unified Payment Interface) PIN which is used to check whether transaction is authentic or not.

WhatsApp also said, “The payment option works with service providers including Facebook” to send payment instructions, maintain transaction history, provide customer support, and “keep our services safe and secure.”

According to Paytm founder Vijay Shekhar Sharma, WhatsApp’s UPI payment platform has security risks for consumers and is not in compliance with the guidelines.

RBI says Localization is mandate for payment data

On April 6, 2018, RBI mandated all the payments system operators in India to ensure that data related to payment systems operated by them be stored in the country, and gave companies six months to comply. The RBI wants data to be stored locally “in order to have unfettered access to all payment data for supervisory purposes”.

The final verdict!

Guys, WhatsApp payment mode is a very good option for all of us, but as per Indian government and RBI, this payment option in WhatsApp doesn’t compliance with the required terms and conditions.

According to RBI, WhatsApp is storing various payment data elements outside India which include transaction ID, expiry of collect request, and retrieval reference number among other data elements. Further NPCI advised by RBI not to permit WhatsApp to go live for full-scale operations on UPI payments system, till the time they fully compliant.

So, to get SC’s approval WhatsApp has to obey, compliant, and fulfill the requirements asked by RBI. We wish WhatsApp can do that successfully because the feature of payment will make it stronger. For more updates get in touch with us till then keep reading and keep yourself update.