WhatsApp Pay cleared for full UPI rollout in India

The removal of onboarding limits for WhatsApp Pay is expected to reshape India’s digital payments ecosystem, enhancing competition and driving innovation in the sector

After a long wait, WhatsApp Pay, the digital payment service integrated into the popular messaging platform, has received approval from the National Payments Corporation of India (NPCI) to extend its Unified Payments Interface (UPI) services to its entire user base in India. This marks a significant milestone for the platform, which can now cater to over 500 million WhatsApp users nationwide.

NPCI announced the decision in a press release, stating, “National Payments Corporation of India (NPCI) has removed the UPI user onboarding limit for WhatsApp Pay (Third Party App Provider), with immediate effect.” This decision lifts the restrictions that previously limited WhatsApp Pay’s reach, allowing the platform to compete more robustly in India’s thriving digital payments ecosystem.

When WhatsApp Pay was initially launched, NPCI implemented user caps to ensure the platform could manage high demand without compromising security or performance. These caps were progressively increased as the platform demonstrated compliance with UPI standards and scalability. By November 2022, WhatsApp Pay was allowed to onboard up to 100 million users, a crucial step in its phased rollout strategy.

NPCI’s latest decision comes after a comprehensive assessment of WhatsApp Pay’s operational readiness, security measures, and compliance with UPI guidelines. This move aligns with India’s broader objective of promoting digital payments and advancing toward a cashless economy.

The lifting of the cap positions WhatsApp Pay to challenge established players like PhonePe, Google Pay, and Paytm, which currently dominate the UPI market. With WhatsApp’s vast user base and integration into everyday communication, the platform has the potential to significantly impact the digital payments landscape.

This development coincides with NPCI’s decision to extend the market cap compliance deadline for UPI service providers to December 31, 2026. Under this rule, no single UPI app is permitted to handle more than 30% of total UPI transactions. The extension gives major players like PhonePe and Google Pay additional time to meet these requirements.