Meta’s WhatsApp has introduced a revised pricing structure for international one-time passwords (OTPs), marking a significant shift in its enterprise messaging strategy. The new pricing scheme, implemented in India and Indonesia starting June 1, sees a substantial increase in fees for international OTP delivery, aiming to enhance revenue generation from such services.
Under the updated system, WhatsApp has introduced a distinct category termed ‘authentication-international’ messages, priced at ₹2.3 per message for the Indian market. This move, while representing a notable surge compared to previous rates, remains significantly lower than traditional SMS charges for enterprises, underscoring WhatsApp’s strategy to attract a wider array of businesses to its platform.
The adjustment in pricing is expected to have a considerable impact on communication budgets of multinational corporations like Amazon, Google, and Microsoft, which have increasingly relied on WhatsApp for authentication purposes due to the cost advantage over traditional international SMS services.
According to industry experts, the previous pricing structure, which offered uniform OTP delivery charges irrespective of the sender’s location, had led to a surge in the adoption of WhatsApp by international businesses seeking to optimize communication costs. However, with the new pricing model, international companies will now be charged ₹2.3 per message, aligning more closely with conventional SMS rates for overseas communication.
Aniketh Jain, founder of customer communications startup Fyno, emphasized the strategic positioning of the revised pricing, noting that it bridges the gap between domestic and international SMS charges. He also highlighted the significance of India as a key market for WhatsApp, evident from the rollout of the new rates in the country.
Enterprise messaging, encompassing various channels such as SMS, WhatsApp Business, and Google RCS, continues to witness rapid growth in India, currently valued at over ₹7600 crore. Despite the increasing popularity of over-the-top channels, conventional SMS remains dominant, particularly for OTP verifications in applications, financial transactions, and service delivery.
The disparity in international SMS charges has long been a contentious issue between tech giants and telecom operators in India, with differing perspectives on the classification of international traffic. While operators attribute higher charges to the location of data servers, companies argue for local categorization due to their India-based operations.
Industry experts, including Mahesh Uppal, have raised concerns over the ambiguity surrounding SMS rates, emphasizing the need for a comprehensive approach that considers various factors beyond server location.
