WhatsApp has been trying to enter the UPI sector to compete with the likes of Google Pay and PhonePe in India. It recently got the approval to double its user base after which it started offering cashback offers to new users. It seems that these efforts are finally proving profitable as sources now indicate that WhatsApp Pay has seen a significant increase in daily transactions.

A recent report by The Economic Times, citing sources familiar with the matter, suggests that WhatsApp has seen a surge in daily transactions after it started offering Rs 33 cashback for every Re 1 sent using the service to users. Daily transactions reportedly increased from a few hundred thousand a day to 2-3 million per day, which is a significant increase.

"There has been a notable increase in transactions recently and they (WhatsApp Pay) are activating various cashback campaigns for existing and new users. This has had a clear impact on transaction volumes," one of the sources said in a statement.

However, given the competition's popularity and market share, the question remains whether WhatsApp Pay will be able to maintain its growth in the future or not. As of April this year, Google Pay and PhonePe held around 47% and 34% of the total market share in India, respectively. WhatsApp, on the other hand, stayed with 0.04% of the market.