Pegasus Spyware Scandal: WhatsApp Payments Faces More Roadblocks

Pegasus Spyware Scandal: WhatsApp Payments Faces More Roadblocks

SUMMARY

Government is in talks with RBI and NPCI to raise concerns regarding payments security

WhatsApp Payments was initially scheduled to launch this year

WhatsApp is currently dealing with the Pegasus spyware issue in India

Dealing with the political and cybersecurity ramifications of the Pegasus spyware scandal, the Indian government seems to be in no mood to allow WhatsApp to roll out its payment services in the country and is in talks with other authorities regarding the risks around WhatsApp Payments.

According to an ET report, the government has reached out to the National Payments Corporation of India (NPCI) and Reserve Bank of India (RBI) to raise concerns regarding data security in WhatsApp Payments “In case some extra steps need to be undertaken to ensure that the security of financial data is not breached,” a senior government official was quoted as saying.

The move has come in the wake of a lawsuit filed by WhatsApp against the Israel company NSO Group, which allegedly developed the Pegasus spyware used to spy on human rights activists, lawyers and journalists in India.

WhatsApp Payments Caught In Pegasus Scandal

Earlier this year, WhatsApp resumed the pilot of WhatsApp Payments in India with plans to launch the service by the end of this year. However, it is stuck in regulatory clearance for seemingly not complying with the RBI’s data-localisation norms for fintech companies, which has delayed the launch.

In October 2019, NCPI chief executive Dilip Asbe said WhatsApp would likely take two more months to comply with India’s data localisation norms, but the Pegasus spying scandal is likely to delay that even further.

Since the news of Pegasus snooping on Indian users emerged on October 29, the government and WhatsApp have been blaming each other.

While the government claimed that WhatsApp hadn’t shared any information regarding the breach, the instant messaging app said that it submitted two documents to the Ministry of Electronics and Information Technology (MeitY), one in May and another in September, informing the government about the breach. While IT ministry officials confirmed receiving the notice from WhatsApp in September, it said it was vague and did not explain the breach clearly.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Pegasus Spyware Scandal: WhatsApp Payments Faces More Roadblocks-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Pegasus Spyware Scandal: WhatsApp Payments Faces More Roadblocks-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Pegasus Spyware Scandal: WhatsApp Payments Faces More Roadblocks-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Pegasus Spyware Scandal: WhatsApp Payments Faces More Roadblocks-Inc42 Media
Pegasus Spyware Scandal: WhatsApp Payments Faces More Roadblocks-Inc42 Media
You’re in Good company