advertisement
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.
This has been one of the many reasons because of which WhatsApp Payment full rollout in the country has been delayed.
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.
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.
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.”
The IT ministry has expressed concern around data safety Facebook users in India following data leak from its platform to Cambridge Analytica. The ministry on 7 June again issued to Facebook seeking explanation on reports that it shared information of users with mobile device makers.
WhatsApp claimed that it also does not store any sensitive payment information such as one-time password send for the transaction, account number or full debit card details.
The fact that WhatsApp is owned by Facebook, and its apparent admission to sharing data with its parent company has complicated the whole process. The UPI guidelines by the NPCI clearly state that all payment providers in India cannot share any sort of data with third-party companies.
In addition to that, NPCI also wants to make sure that all data centres of the payment providers are set up within the country by end of 2018.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)