WhatsApp adds prepaid phone recharges in India as its payments usage still lags

In an effort to enhance its transaction capabilities, WhatsApp is introducing prepaid phone recharge options in India. This strategic move aims to increase user engagement within the app, which has faced challenges in establishing a significant foothold in a payments sector largely dominated by PhonePe and Google Pay, both of which are backed by major corporations. On Thursday, WhatsApp announced its collaboration with PayU, a fintech company, to facilitate mobile top-ups for major telecom providers such as Jio, Airtel, and Vodafone Idea directly through the messaging platform. This new feature is expected to roll out to all users across India within the next two weeks, as confirmed by PayU to TechCrunch. Despite boasting over 500 million users in India and launching its payments feature in 2020, WhatsApp has struggled to compete effectively in the digital payments arena, which is heavily influenced by the government-supported Unified Payments Interface (UPI). Recent statistics from the National Payments Corporation of India reveal that WhatsApp processed more than 130 million transactions in March — a fraction compared to the staggering volumes handled by PhonePe and Google Pay, which processed over 10.5 billion and 7.5 billion transactions, respectively, during the same timeframe. The disparity in usage has remained even after the National Payments Corporation of India lifted onboarding restrictions on WhatsApp Pay in late 2024, allowing it to scale up its services to the entire user base following years of gradual rollout. However, since the easing of these restrictions in early 2025, WhatsApp has seen a notable increase in payment activities, with UPI transactions more than doubling from approximately 61 million in January 2025, according to NPCI data. During this period, its competitors, PhonePe and Google Pay, also saw growth of around 30% and 20%, respectively, maintaining their dominance in transaction volumes. The introduction of prepaid recharges is part of WhatsApp's broader initiative to enhance its payment functionalities and services in India. Users can already utilize the app to pay bills, book metro tickets, and access various government services through chat interfaces. To further streamline user experience, WhatsApp has added a rupee (₹) icon on its home screen, making the payments section more accessible alongside features such as mobile recharges and peer-to-peer transfers. Ravi Garg, the director of business messaging at Meta India, emphasized that these updates are designed to simplify everyday transactions within WhatsApp, showcasing the company's commitment to providing more utility beyond mere messaging. This development underscores Meta's aspirations to increase user engagement, even as it continues to face stiff competition from established digital payment giants.