The customers retention strategy for its payment features does not seem to be working well for WhatsApp, as the Meta owned company has failed to maintains the increase in the numbers of transaction in July compared to the previous months.
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In June, WhatsApp launched a cash back scheme for user who could avail the offers for the next three payment via UPI to get a full refund of Rs 105. However, the company later withdrew the offer & saw a sharp drop in transaction volumes from 23.04 million in June to 6.18 millions in July, according to NPCI data. The trend continued further as WhatsApp recorded 6.72 million transaction in August. (WhatsApp UPI)
While WhatsApp UPI transactions volume decreased for consecutive months, the platform saw its transaction value rise from Rs 429 crore in June to Rs 502 crore in July and Rs 567 crore in August.
Overall, UPI recorded 6.57 billion transactions worth Rs 10.72 lakh crore Rs 10.72 billion in August. In term of market share in term of volume, PhonePe controls 47.8% in the UPI ecosystems, followed by Google Pay and Paytm with a share of 33.6% and 13.2%, respectively. BHIM, promoted by the government, has a 0.38% share, while WhatsApp has only 0.1%. PhonePe, Google Pay and Paytm also lead the pack when it comes to valuing smart market share at UPI.
Still, there is a positive sign for WhatsApp, which used to record around 1 million transaction in 2020 and 2 millions in 2021. (WhatsApp UPI)
In the future, the market share of the top three players may be capped at 30% to comply with NPCI rules. The deadline set by NPCI to adhere to the market capitalization is January 2023. According to a report by ET, the deadline may be extended.