WhatsApp sharing limited data with Facebook on payment feature
The Ministry of Electronics and IT has written to NPCI to verify compliance around WhatsApp payment
Popular messaging app WhatsApp has claimed it shares limited data of payment service with its parent firm Facebook and the social media major does not use the information for commercial purpose.
“Facebook does not use WhatsApp payment information for commercial purposes, it simply helps pass the necessary payment information to the bank partner and NPCI(National Payment Corporation of India). In some cases, we may share limited data to help provide customer support to you or keep payments safe and secure,” WhatsApp claimed on its website. WhatsApp is running beta version of its payment service in India.
According to government sources, the Ministry of Electronics and IT has written to National Payment Corporation of India to verify compliance around WhatsApp payment and check if WhatsApp is sharing data with its parent firm Facebook.
The ministry has asked NPCI to verify compliance of WhatsApp payment it scales up its service.
Facilitate movement of funds
WhatsApp on its website said that when a user makes a payment, the mobile messaging app creates the necessary connection between the sender and recipient of the payment, using Facebook infrastructure.
“We pass the transaction information to the bank partner, which is called a PSP (payment service provider), and to NPCI (National Payment Corporation of India), so they can facilitate the movement of funds between the sender’s and receiver’s bank accounts,” the website said.
When contacted, WhatsApp spokesperson said, Facebook processes UPI (Unified Payments Interface) transaction data as a service provider for WhatsApp, and does not use WhatsApp payments transaction data for commercial purposes.
(Except for the headline, this story has not been edited by Daily Report and is published from a The Hindu.)
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