Facebook-owned messaging giant WhatsApp recently updated its privacy policy, aiming to monetise better its huge customer base. Many users did not take it well and started exploring alternative options such as Telegram and Signal.
WhatsApp’s New Terms and Conditions Cause Global Backlash against Company Policy
In a world where Industry 4.0 is dealing with 5G and society is struggling with the Covid-19 healthcare challenge, many consumers would tend to close an eye on some privacy issues which still allow them to work, stay in touch, shop online and access entertainment from the convenience of their homes.
And then there is the increasing share of those, more demanding, digital users which cannot seem to agree with one of the most popular mobile apps in India, Facebook’s own WhatsApp messaging service. The company has announced recently a string of changes to its customer privacy policy, leading dissatisfied users to seek adequate alternatives.
Industry reports indicate Telegram and Signal as the mobile apps which have posted significant increases in the first weeks of 2021. And while several million of new downloads in India may not seem like much of a challenge to WhatsApp supremacy, they go hand in hand with a relative decrease of about a third in app downloads and updates of the dominant messaging service.
Telegram, in comparison, is also used for brand marketing by a lot of desi companies such as online casinos and entertainment channels, the local cricket site 10Cric has been extremely successful in their marketing and acquisition using Telegram as a channel . Yet, it does not sell user data to providers and third parties. Neither does Signal, the new rising star of social messaging which also boasts a solid end-to-end encryption. In this context, both Telegram and Signal and Telegram have jumped at the opportunity to market their apps as safer alternatives to WhatsApp.
Mobile Messaging Alternatives in India Help (Self-)Regulate Digital Markets
India has undoubtedly been one of the global champions of attempting to rein in some of the global tech giants, curbing fintech omnipotence and placing limits on payment transactions in terms of online market share. Arguably, however, a mixture of user awareness and a worldwide demand for more transparency and security is likely to be needed to ensure better consumer protection in many of the fast-developing markets.
India is a crucial market for both Facebook and WhatsApp, boasting more than 400 million users across the subcontinent for both platforms. While Europe avoided having to part with its privacy (having the ability to enforce enormous fines for personal data abuse), desi users seemed destined to just accept that their data will be shared among Facebook, Instagram and practically any other companies which seek to buy commercial space on WhatsApp chats and channels.
Then again, Tesla CEO Elon Musk and the infamous former US National Security contractor Edward Snowden both endorsed Signal in the past weeks, with the messaging app raking in more than 7 million new users in just a few days. More importantly, Telegram reported 25 million new signups, bringing its total user base to 500 million globally.
India’s own Anand Mahindra seems to have begun using Signal, along with Paytm creator Vijay Shekhar Sharma, PhonePe CEO Sameer Nigam and fintech startup CRED founder Kunal Shah. Indeed, Signal aims to reach 200 million desi users in the next two years.
WhatsApp Scrambles for Damage Control
WhatsApp reputation in Bharat may just weather this storm easily. After all, its strong user base exchanges more messages than any other market, while the recent rollout of direct payment integration WhatsApp Pay confirms the company's intentions of expanding into financial and retail services.
Still, it could not overlook the effects these trends might have on its reputation. It launched an advertising campaign in dozens of regional newspapers across India, in an attempt to protect an image of responsibility and high customer protection standards. The ads emphasised the encryption of messages and calls but failed to go beyond, as WhatsApp pursues its long-term monetisation strategy. Only time will tell whether these efforts will be enough to appease the more demanding share of its users.