WhatsApp plans cashback for peer transfers, merchant payments in India push-sources

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NEW DELHI (Reuters) - WhatsApp will within weeks roll out cashback rewards to lure more Indians to its peer-to-peer payments service and is testing similar incentives for merchant payments, two sources said, as the company seeks to compete with rivals including Google.

The latest move comes days after WhatsApp won regulatory approval to more than double its payments offering to 100 million users in India, its biggest market with more than half a billion users overall.

The incentive, spread over three transactions, will be given irrespective of the amount being transferred, even if it is as little as 1 Indian rupee, in what one source described as WhatsApp's"user acquisition drive." Separately, in a broader payments push, WhatsApp is testing a programme where it will dole out cashback incentives for users who pay highway tolls and utility and other bills straight from the app, the two sources said.

WhatsApp also assessed it needs to go beyond peer-to-peer payments as users use rival apps to make merchant and bill payments which, the study stated, will be a"more attractive proposition to switch over" to WhatsApp.

 

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