India has removed restrictions on WhatsApp’s payments service

India has officially lifted restrictions on WhatsApp’s payment service, marking a major win for Meta in its largest user market. The change allows WhatsApp to expand its payment feature, WhatsApp Pay, to all its 500 million users in the country. This move gives Meta a stronger foothold in the competitive fintech sector.

The National Payments Corporation of India (NPCI), which manages the Unified Payments Interface (UPI), announced the decision on Tuesday. Previously, WhatsApp Pay was limited to 100 million users, with gradual rollouts starting in 2020 when it was capped at 40 million. The new approval signals a shift in the regulator’s cautious stance toward WhatsApp’s payment ambitions.

UPI is a critical platform in India, handling over 13 billion transactions each month. The market is currently dominated by Google Pay and PhonePe, which together control more than 85% of UPI transactions. Concerns over this market concentration had prompted discussions about limiting any single app’s transaction share to 30%. However, NPCI has delayed the implementation of this rule until December 31, 2026.

A WhatsApp spokesperson expressed excitement about the development, stating, “We’re committed to making payments on WhatsApp simple, reliable, and secure.” They emphasized the platform’s goal to enhance users’ convenience through features like bill payments, ticket booking, and shopping, while also supporting India’s digital and financial inclusion efforts.

This decision positions WhatsApp Pay to compete more aggressively with established players in India’s rapidly growing digital payments ecosystem.