WhatsApp has set up a payment data storage system in India, according to the Reserve Bank of India’s (RBI) directive that all such data should only be stored locally, as the Facebook messenger seeks to deepen its offers in its largest market by users.
Facebook’s email company, which has more than 200 million users in India, is trying to enter the country’s payment space. His decision to comply with storage standards could potentially threaten established players such as SoftBank and Paytm, backed by Alibaba.
A WhatsApp spokesperson said he had launched a pilot project with nearly a million users in the country. “In response to the payment data circular in India, we have put in place a system to store payment data locally in India,” the spokesman told Mint. “WhatsApp Payments is useful for people in their daily lives and we hope to soon extend the functionality to India so that we can contribute to the country’s financial inclusion goals.”
WhatsApp’s move comes at a time when most payment companies still have limited data storage in India and are struggling to comply with new data localization standards.
RBI has set 15 October as the deadline for data storage for all payment system operators. In addition to Visa, American Express, Facebook, PayPal, and Mastercard, among others, Google and WhatsApp are also required to store their data.
At a meeting of Google CEO Sundar Pichai and Information Technology Minister Ravi Shankar Prasad at Google’s headquarters in Mountain View, USA, in August, the company agreed to respect the standards, but asked for a deadline until the end of December said a manager in September, asking for anonymity. Google has not confirmed the development yet.