I have been rather quiet, as were in the midst of summer holidays season here in Europe.
However, this update I found rather interesting. WhatsApp has submitted updates to the Google App Store to allow payments (link here).
Facebook, which bought WhatsApp for a $19 billion back in February 2014, has already added a peer-to-peer payment solution to its Messenger chat app. However, WhatsApp has deeper and wider adoption globally, more so than Facebook Messenger, Viber etc so the move is more interesting.
So if we take a market like India, and look at two key facts:
- Remittance Inflows: India was the top receiving country in 2016 for inflows of remittances at $62.7 billion (2 – China, 3 – Philipines, 4 – Pakistan, link here)
- Users: India has 200 Million active WhatsApp users (link here)
We can clearly see a challenge to the exchange houses of the mid east and traditional global firms such as Moneygram and Western Union. The challenge will be converting the virtual cash to physical. However, I am sure they will partner with some key financial institutions in each market to enable this – which ever institution does partner will have significant advantage (not only from branding) but accessing digitally savvy customers
However, the challenge will be converting the virtual cash to physical. We are certain, that WhatsApp will partner with some key financial institutions (also helps with compliance) in each market to enable this – which ever institution does partner will have significant advantage (not only from branding) but accessing digitally savvy customers
With Apple also set to introduce the ability to send money via Apple Pay within its iMessage chat service with the launch of iOS in Q3 of this year. The question emerges “the great
The question soon emerges “the great fintech convergence” aka everyone will offer the same feature/functionality eventually. if so, how does everyone differentiates? Your thoughts?
Let us know your thoughts?
All good things
MN
Finovation 