In a significant development, India has removed restrictions on WhatsApp's mobile payments service, WhatsApp Pay, paving the way for a wider rollout to its massive user base in the country. The National Payments Corporation of India (NPCI), the governing body overseeing the popular Unified Payments Interface (UPI) network, announced on Tuesday that WhatsApp can now expand its payment service to all its users in India, numbering over 500 million.

This decision marks a significant victory for Meta, WhatsApp's parent company, as it seeks to compete with entrenched fintech rivals in its largest market by user base. The move also signals a shift in the regulator's cautious approach to WhatsApp's payments ambitions, which had previously been limited by a gradual rollout strategy.

WhatsApp Pay was first launched in India in 2020, but its rollout was initially capped at 40 million users. This limit was later extended to 100 million users in 2022. With the removal of these restrictions, WhatsApp can now expand its payment service to its entire user base in India, providing a significant boost to its digital payments ambitions.

The development comes at a time when India's UPI platform, which processes over 13 billion transactions monthly, is facing increased scrutiny over market concentration. Currently, Google Pay and Walmart-backed PhonePe control more than 85% of UPI transactions, raising concerns about the dominance of a few players in the market. The expansion of WhatsApp Pay is expected to increase competition in the digital payments space and provide users with more options.

The NPCI's decision is seen as a positive step towards promoting digital payments and increasing financial inclusion in India. With WhatsApp's massive user base and user-friendly interface, the expansion of WhatsApp Pay is expected to drive adoption of digital payments among millions of Indians who are still reliant on cash-based transactions.

The development is also significant for Meta, which has been investing heavily in its digital payments capabilities. The expansion of WhatsApp Pay in India is expected to provide a significant revenue boost to the company, which has been facing intense competition in the digital payments space.

As WhatsApp Pay expands its services to all users in India, it will be interesting to see how the digital payments landscape in the country evolves. With increased competition and innovation, users are likely to benefit from better services and more options, ultimately driving the growth of digital payments in India.