MobiKwik Owned Zaakpay Collaborates with Meta for In-App Payments On WhatsApp

Zaakpay, the payment gateway arm of fintech startup MobiKwik, has collaborated with social media behemoth Meta to allow in-app payments over WhatsApp.

The new tool will enable users to make payments directly within chats, and merchants to receive payments directly within WhatsApp.

Meta India’s director of business messaging, Ravi Garg, commented on the collaboration: “This integration with Zaakpay is another step in building a more seamless purchase experience, allowing people to make payments using their preferred payment method for a product or service they want to buy right from their WhatsApp chat.”

Related: Fintech Startup Paysharp Becomes Payment Aggregator, Receives RBI Nod

The embedded payments system, which is available to both consumers and companies, will provide users with a variety of payment options such as credit cards, debit cards, UPI, and wallet payments.

On the B2B side, the finance company stated that the connection will enable MSMEs to reach a bigger consumer base via WhatsApp’s user network, particularly in Tier II and III locations.

According to MobiKwik, the new product would give users with freedom and convenience while also improving merchants’ business efficiency. The new product suite aims to capitalize on the growing demand for conversational commerce by integrating payments into the primary app stack.

“We aim to unlock enormous potential in India’s hinterlands by combining Zaakpay’s secure payment gateway and WhatsApp’s vast user base.” ZaakPay’s business head, Harvinder Singh Chadha, stated that the company is creating an environment that allows for seamless shopping, payments, and commercial involvement in one spot.

MobiKwik, founded in 2009 by Bipin Preet Singh and Taku, provides a range of financial products for both customers and merchants, such as payments, digital credit, and investments. It became a unicorn in October 2021, when a secondary offering of employee stock options raised its price above $1 billion.

“Zaakpay’s payment gateway, which operates within a single chat window, improves user security by centralizing all transactions in a single secure interface. Zaakpay offers client convenience and transaction security by combining advanced encryption techniques, according to MobiKwik.

This comes nearly a year after MobiKwik’s Zaakpay gained in-principle approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator. The licence enabled the company to provide payment aggregation services and onboard additional merchants.

The Delhi NCR-based company became profitable in fiscal year 2023-24 (FY24), reporting a net profit of INR 14.1 Cr vs a net loss of INR 83.19 Cr in the previous fiscal year. Meanwhile, revenue from operations increased by 62% to INR 875 crore in the fiscal year ending March 2024, up from 539.5 crore in FY23.

The fintech startup refiled its draft red herring prospectus earlier this year in order to fund INR 700 crore through an initial public offering (IPO), which will solely include a new issuance of shares with no offer-for-sale component.