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Understanding WhatsApp’s New International OTP Charge in India
In a recent move, WhatsApp has implemented a new charge for international one-time passwords (OTPs), affecting businesses in India. This decision aims to boost earnings from the platform’s business messaging service. Despite a 20-fold increase in this charge, it still remains considerably lower than international SMS rates.
Implications of the Decision Effective from June 1st
WhatsApp’s decision, as reported by the Economic Times, is expected to attract more companies to its business messaging sector. The introduction of a new message category called “Authentication-International” priced at ₹2.3 per message will impact both India and Indonesia. However, international companies like Amazon, Google, and Microsoft may face challenges due to the increased rates.
The Reason Behind the Change
Previously, Indian companies were charged ₹0.12 per message for SMS, while foreign companies paid ₹4.13. To bridge this gap, WhatsApp initially offered a flat rate of ₹11 to all users. However, foreign companies will now have to pay ₹2.3, starting from India. This adjustment underscores the significance of India for WhatsApp’s business messaging.
Growth in Enterprise Messaging in India
India is witnessing a significant growth rate in enterprise messaging. Currently valued at over ₹76 billion, this market includes SMS, WhatsApp Business, Google RCS, and Push Notifications. SMS dominates this market, with companies predominantly using it for OTPs.
Understanding International SMS Charges
The debate surrounding the higher charges for international SMS has been ongoing in India. Telecom companies argue that there are no clear rules regarding “international traffic,” and prices are set based on the location of the data server.
WhatsApp’s decision to introduce a higher charge for international OTPs in India reflects the platform’s strategic focus on business messaging services. While this move may enhance WhatsApp’s revenue, it could pose challenges for international companies operating in the Indian market.
