WhatApp recently launched an in-chat payment option in Singapore following successful roll-outs in both India and Brazil. And, given how widely used WhatsApp is, it’s likely that it will be launched in other regions in the future. However, there are security concerns around this, particularly given WhatsApp is a target for fraudsters. So how does it work, and should we be worried?
How does WhatsApp payments work?
WhatsApp payments work slightly differently depending on the region. In India, for example, it uses a Unified Payments Interface (UPI) method which allows for fund transfers without the need to exchange bank account details via a unique payment link. In Singapore, WhatsApp payments uses Stripe Connect and Stripe Checkout services, which enables people to pay business using credit or debit cards, or by bank transfer using the country’s PayNow fund transfer system.
How safe are WhatsApp Payments?
WhatsApp ensures security in a number of ways. Firstly, the use of end-to-end encryption means information shared during the transaction is only visible to the sender and recipient.
Secure bank verification means your bank account details are verified through a secure and encrypted process and WhatsApp doesn’t store your bank details.
There are transaction limits which protect customers by limiting the amount of money they can transfer to a person in one go. WhatsApp also monitors transactions to assess and flag any suspicious behaviour. They also offer additional security through multi factor authentication.
What are the concerns around WhatsApp payments?
With these measures in place, WhatsApp payments are as safe as many other electronic payment platforms. However, because it is linked to the chat function, it makes it easier for fraudsters to trick people into sending them money. There are already known scams where criminals have posed as friends or family members, or have been able to impersonate people by hacking into their WhatsApp accounts. And whilst in Singapore, WhatsApp payments are initially being launched only for use by businesses, there is nothing to prevent scammers impersonating businesses either.
In general WhatsApp payments have several safety features to ensure you are protected. However, as with any type of technology, it is always important to use it with caution and be aware of the different techniques scammers can use to trick you.