WhatsApp Pay (2023): Definition, How It Works?

WhatsApp is one of the best Android messaging apps for some of the best Android smartphones. In India and Brazil, WhatsApp now allows you to send money directly from the app. The functionality uses India’s Unified Payments Interface (UPI) infrastructure to make money transactions possible in that nation. You can send and receive money from friends and family using WhatsApp Pay. Here’s how to start using WhatsApp Pay for payments.

What is WhatsApp Pay?

Businesses may take payments from clients with WhatsApp Pay, a handy payment tool included in the WhatsApp messaging app, without needing to use other websites or payment gateways. Instead, transactions can be started and finished right within the chat window, which streamlines and expedites the payment process. For instance, a company can create a payment request or offer a payment link within a chat when a consumer wants to use WhatsApp to make a payment. Without ever leaving the chat interface, the consumer may simply comply with the instructions, choose their preferred payment method, and finish the transaction.

Read also: WhatsApp Group Name Ideas

When was WhatsApp Pay introduced?

 In India, WhatsApp Pay was introduced in February 2018 as a test. A cooperation with ICICI Bank allowed for the introduction of payments through WhatsApp to a million customers. The messaging app was given permission by NPCI on February 7, 2020, to gradually carry out its digital payment service. Ten million people in the nation would have access to payment services over WhatsApp in the initial phase.

How to set up payments on WhatsApp?

You must first link your bank account to WhatsApp in order to begin making payments through the app. All of India’s main banks offer UPI, which is primarily based on your phone number. The best part is that you may use WhatsApp’s payment feature even if your bank hasn’t set up a UPI account for you because it will generate a new UPI ID for you. Here’s how to configure it:

Step 1: Tap the three-dot icon in the top right corner of the WhatsApp app once it has loaded on your phone.

Step 2: Select “Add payment method” under Payments. A list of banks’ names will be given to you.

Step 3: Your number (connected with the bank) will be validated after choosing the bank’s name. You must select Verify via SMS in order to do this. Ensure that the WhatsApp number you use and the one associated with your bank account are the same.

Step 4: After the verification procedure is finished, you can finish configuring payments. As with other apps, setting a UPI pin is required in order to complete transactions. Following that, the selected bank will be visible on the payments page.

How to send and receive money using WhatsApp?

It’s simple to send and receive money using WhatsApp. The payment option appears right in the conversation window, and sending or receiving money is as simple as it gets:

  • Choose the person from whom you want to receive money.
  • Pick the clip icon from the discussion pane.
  • Select Payment.
  • Choose the desired donation amount (you may also include a remark).
  • Type in your UPI PIN.
  • Once the transaction is complete, a confirmation message will appear right in the discussion window.

All there is to it is that. It’s a significant thing that WhatsApp now enables UPI transactions, which makes sending and receiving money from your connections simpler than ever. The easiest way to get started using WhatsApp’s payments feature is to use one of the best Android phones.

How Does WhatsApp Pay Benefit Businesses?

Through your business account, you can reach out to specific clients or groups to sell your services, and you can then utilize WhatsApp Pay to accept payments online. Customers favor businesses that simplify their life, whether it be through a product, service, or payment method. With the help of this tool, you can provide your clients with a simple payment option and facilitate a positive customer experience.

The following are some advantages of this feature for businesses:

A Boon for Local and New Businesses: Customers contacted local or new businesses using WhatsApp to inquire about products and payment methods even before the launch of WhatsApp Pay. Due to the fact that everything can be done via WhatsApp, this service will be especially helpful for companies without fully functional eCommerce websites.

Immediate Sales: The sales team can use WhatsApp through their corporate accounts to communicate with customers instead of sending emails. The sales agent can answer any questions a consumer may have while conversing with them, provide all the necessary product or service details, and even give them the option to purchase the item right then and there. The fact that payment will be handled through WhatsApp Pay could result in a sale for your company right away.

Useful in Tracking Customer ROI: It will be simpler for you to track which client chats led to a purchase and which did not, as well as how much ROI you are earning from WhatsApp payments if your sales team communicates with the customer exclusively through WhatsApp. Through WhatsApp, the sales team may view the full history of payments.

The WhatsApp Pay feature may ultimately help businesses grow and get past the obstacles posed by online payments.


WhatsApp still has a ways to go in terms of transactions given the fierce competition from other UPI-enabled payment apps. Although PhonePe and Google Pay appear to be dominating the market right now, anything is possible. Are you prepared to run your brand’s WhatsApp commerce? Today, schedule a demo with Vizury.

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