WATCH: WhatsApp has unveiled a new payment mode that is integrated into its messaging platform. We asked people about their thoughts on the application's new payment feature.
unveiled by messaging platform WhatsApp on Tuesday could carry a slightly higher risk of exposing users to scams compared to conventional e-wallets, tech experts said.
The service was rolled out to a"small number" of Singapore-based businesses on Tuesday and will be available to more in the coming months, the firm added. The experts agreed that ultimately, should the right safeguards be put in place, the service could prove to be a much more convenient way for users to transact their money.
The experts said that users of the WhatsApp payment method will likely have to sign up with Stripe first. WhatsApp will also require the legal name and identity of the user to verify their eligibility to use payments on WhatsApp. In 2019, the South China Morning Post reported that 680 Chinese nationals were arrested in Malaysia over a sophisticated online scam operation targeting WeChat Pay users.
Mr Shivaji Das, Asia-Pacific managing director of consultancy firm Frost and Sullivan, said that while WhatsApp's new payment option is no less secure than other e-wallets, the complication comes in integrating a chat application with a payment mode. And even if WhatsApp has the resources to verify the legitimacy of the small number of businesses involved now, it may not be possible to do so when the service goes mainstream.
For instance, it is not known if data of the payment transaction details of each user will be shared with Meta, which could then use it to push targeted advertisements based on what users had purchased. This means that other than just sending the money with a press of a button, a verification process requiring additional information such as the user's fingerprint or a one-time password on a separate application will be required before the money is sent through.
As for the prevention of bogus businesses signing up for the service, Mr Das said that there should be a stringent process of checks. To WhatsApp's credit, it is already limiting the exposure of consumers to scams by limiting the payment mode to businesses for now, said Mr Lim.
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