mark zuckerberg: Mukesh Ambani-Mark Zuckerberg's corporate relationship will boost payments: Experts

BENGALURU: Reliance Jio-Facebook collaboration is expected to boost the digital payments sector, surpass small players and promote unification, according to fintech experts.

Facebook's direct messaging platform, WhatsApp, and telecommunications operator Jio plan to work with 30 million corner stores across India to help them digitally interact with customers in their neighborhood. The companies will then expand the digital payment service to farmers, teachers, students and small and medium-sized businesses.

This move will help WhatsApp take over directly established players Google Pay, PhonePe and Paytm, possibly even dominating the field. WhatsApp has more than 400 million users in India and is awaiting final liquidation to launch WhatsApp Pay, which is designed to work in the integrated payment interface.

WhatsApp has technology and range, while Jio has a huge network of corner stores across India. Other fintech players have spent years building a network of merchants from scratch, something WhatsApp should not do. "Both combined will be a great player in the payouts. It will definitely make it harder for other companies to compete, "said Sanjay Khan Nagra, a Khaitan & Co. partner.

The combination could possibly be for India what WeChat-WeChat Pay, Alibaba-Alipay is in China, Nagra said. "In the payment field, only a select few are expected to appear as winners. Quite sure, this will also lead to some consolidation in the area ", he added.