Mobile

WhatsApp Pay — Do we need new payment services?

Now, even in the most inexpensive phone, you can find NFC and the ability to use mobile payments. It doesn’t matter what manufacturer your device is because almost everyone in the model range has such models. Many people stopped using physical bank cards long ago. In this post, we’ll discover most about WhatsApp Pay, and whether you should use it or not.

For example, I remember about mine only when I need to enter its data on the site for online purchase. And then, only if the site does not support Google Pay, Apple Pay, or something like SMS payment. Here are just some services that are constantly trying to enter this market, but do we need them? Or is what we have now more than enough?

Pay for purchases by phone

I remember the times when payment services had just started to appear, but it was not very good with them, I was working on options like issuing a bank card in another country. So much I wanted to give up not only cash but even bank cards, entrusting everything to my little electronic assistant.

First of all, it is convenient due to the fact that we never leave home without a smartphone. Think back to how you forgot your wallet by taking a different bag or wearing a different jacket. This does not happen with a phone because, like house keys, we take it last.

Over time, the banking sector and the mobile payment system have improved a lot. Moreover, I can safely say that in our country the rates of development of this direction were ahead of many Western ones. I remember when we already had phone payments in full swing, I asked in Germany at the checkout in a large store if I could pay with Apple Pay, and they looked at me as if I were wild from the forest. They just didn’t know what it was.

I currently use Apple Pay, Google Pay, and bank apps. At one time, I tried to accustom myself to other financial benefits, like SberPay and the Huawei wallet. Unfortunately, there are not many payment methods on these smartphones, since they are deprived of Google services, and no matter how you try to return them bypassing the rules, the payment will not be returned. This is all due to the fact that the authorization, in any case, goes through the Google server every time and he simply does not pass it.

I have so many payment methods due to the fact that I constantly use test smartphones, except for my two. But if not for this situation, I still would not require additional ways to exchange money with sellers or friends/relatives.

When WhatsApp Pay appears

The idea for this article was prompted by the launch of the new WhatsApp Pay service in India. The system was tested for about two years and received various permissions. Now, despite the presence of other payment systems in the country, it has started working. In India, there are about 400 million WhatsApp users, so this could be game-changer.

If the figure is not impressive, I would say that one in 15 people in the world is Indian who uses WhatsApp. Of course, if the statistics are to be believed. It is unlikely that we will have this service, but it is still a bell.

The service’s interest in such a market and such a service is quite understandable. With each transaction, its management will receive a commission, and with such a large number of users, the account goes to hundreds of millions, if not billions of dollars a year.

Actually, this is precisely why such systems appear. Apple and Google are in a much more privileged position, which “hold” the smartphone market, collecting a very good cash crop from it, because you can pay via Apple Pay and Google Pay not only in stores but also on websites.

Sometimes there are problems with transferring funds between users, but this can also be solved. To do this, everyone has a banking application, which does not even have to be, like everyone else.

For some time now, a fast payment system has been operating in most countries. It includes major banks and allows you to make transfers between their clients without commission. There are some restrictions, but they don’t bother that much if you just transfer money to each other for coffee or other small purchases. It includes almost all major banks and their number is growing. As a result, the vast majority of users can go to their banking applications and send money to almost any compatriot.

WhatsApp Pay – Do I need new payment methods by phone?

So we just don’t need any more payment methods? To do this, answer a simple question: Do you have difficulty with Google Pay or Apple Pay, depending on which one you use?

Personally, I don’t have any difficulties. There are no commissions, no delays, the service always works, the payment method is always in your pocket. And if I need to transfer money to someone, then I can do it with one of my cards.

In this case, competition is simply not needed, since there is simply nowhere to improve the payment system. If suddenly Google, Apple, or SBP start taking a commission from us, and not from sellers, then competitors will begin to appear, but I don’t see this in the foreseeable future.

The only thing I can suggest is to make payment by QR codes more affordable, but the widespread deployment of such a system is too difficult. We need to equip stores, work out security, and promote service. Until that happens, NFC will appear in even more budget smartphones. Why are their smartphones, NFC is already in trackers for $30-40, like this or that.

If I missed something or you just disagree with me and you have an idea of ​​what needs to be done, write in the comments or in our Telegram chat. The topic is interesting – let’s discuss it.

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