Whatsapp’s bet on Razorpay

WhatsApp & Razorpay did a major announcement yesterday. A deeper integration that will change the game of India’s mobile commerce. Here’s the full breakdown & what future looks like ⬇️

Some context 🗓️
WhatsApp has 500 million users in India – it’s biggest market in the world. When Mark Zukerberg (Founder of Facebook) paid $16 Billion to buy WhatsApp – everyone wondered – ” How will he get the money back? “

Enter 2023 ⚡️
WhatsApp is moving from being the “Chat app” → “business app”. It wants to be the godfather of mobile commerce in India & boy – it has some good cards up the sleeves.

Let’s segment WhatsApp into 4 categorise.
→ Group communication
→ B2C communication
→ Logistics
→ Payments

First/ group communication 💭
The whole launch with “channels”, “screen sharing” & “broadcast” features – it’s all part of solving number of use cases around “communication” for it’s users.

Second/ business to consumer communication 🤝🏻
I wrote about it a week back – I will drop that article link in comments. But, short context – WhatsApp wants to replace SMS. It wants to get brands to communicate with their customers on WhatsApp as the primary channel.

Third/ logistics full stack approach 🚚📦
JioMart partnership was to solve for the complete end consumer delivery experience. It allows WhatsApp to scale to thousands of ping codes without having to build it on it’s own – unlike WeChat / Gojek.

And the most important piece – payments 💸
WhatsApp owns 0.1% of the UPI market. You see – the RBI broke WhatsApp’s UPI game by choking how many customers they can onboard on WhatsApp pay(on purpose)wrote a larger piece on this – will drop link in comments.

Enter, Razorpay – India’s largest payment gateway 💣
It understood the WhatsApp payments pain point. Plus, it has Payment Aggregator (PA) License from the RBI. It can do what WhatsApp UPI couldn’t.

Why is it so huge? 🥹
Short answer – “native shopping”

Think of it this way – imagine you are a D2C brand, say Tira beauty. You want to sell products to your existing customers. You can now push this through WhatsApp & customers don’t even need to visit your website – that’ crazy.

And, it’s more than just repeat purchases.
Think of WhatsApp as the new entry point for businesses who sell their products. Users don’t need to go to google/brand website to make purchases. They can do write within the WhatsApp 😎

This is huge for a large portion of Indians who have never bought online.
Yes, only 30 crores Indians / 140 crore have ever bought online. And this WhatsApp <> Razorpay integration will change the game for them. Their first online purchase could be on WhatsApp.

So if you are thinking WhatsApp is now competing with MeeshoAmazonFlipkart, the answer is HELL YES!