As Amazon launched Pay Later, Whatsapp is also looking to enter the loans and lending market in India via its payments service, WhatsApp Pay, according to one of its objectives of operations listed in its memorandum of association (MoA) in a regulatory filing of its local entity last month. However, the Facebook-owned messaging app is finding it difficult to roll out its payment services in the Indian market. WhatsApp has mentioned ‘credit’ as one of its future business plans for India in a regulatory filing.
WhatsApp Eyes Lending Market In India: What we know so far
- On Wednesday, Amazon opened up its Pay Later facility for lakhs of customers in India. Through this, the company allows customers to pay bills or buy essentials, electronics and clothing items via zero-interest credit, provided the amount is paid the next month.
- The amount can get converted to EMIs up to 12 months at “nominal interest rates”. The move is likely to help customers hit by the economic fallout of the COVID-19 pandemic and lockdown.
- “As a pilot, this unique service was available to a small set of customers and Amazon Pay has now extended this service to lakhs of eligible customers. Amazon Pay has partnered with Capital Float and The Karur Vysya Bank(KVB) to design and enable ‘Amazon Pay Later’ service for its eligible customers,” Amazon India said in a blog post.
- Meanwhile, the development comes as WhatsApp’s payments business is expected to get a green light in the coming months. The first phase of the rollout will offer WhatsApp payment services to over 10 million users.
- Recently, Whatsapp has also entered into a partnership with Reliance Retail last month. Reliance Jio launched JioMart in select areas in India, allowing customers to order groceries via WhatsApp.
- The commerce partnership between Jio and WhatsApp has been started in Mumbai suburbs already. “To advance money or give credit on such terms as may seem expedient, and with or without security, to customers and others,” the filing said.
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