Under enormous pressure from the public, from the government, and from its competitors, WhatsApp has now clarified that its recent privacy update doesn’t affect its payments product.
But it specifically added: “Facebook will have no access to encrypted BHIM UPI transaction information in clear format.”
Unified Payments Interface (UPI) is a system in India that powers multiple bank accounts into a single mobile application merging several banking features, seamless fund routing & merchant payments into one hood.
WhatsApp India Payments Policy to hold sway
WhatsApp says all payments data is encrypted and kept within the Indian borders, as per the Reserve Bank of India’s guidelines.
It may be recalled that after a plenty of start and stop and legal issues, Facebook-owned WhatsApp finally got the nod to launch its payments service in India last year.
The National Payments Corporation of India (NPCI) gave WhatsApp the go-ahead to go live on the country’s United Payments Interface (UPI). WhatsApp can expand its UPI userbase gradually.
But the permission came with a caveat. NPCI has told WhatsApp, which has over 400 million users in India, can expand payments to its users in a “graded manner”.
As per NPCI, WhatsApp can extend the payments service to 20 million users and has to work with multiple banking partners.