Brazil is another country where money was transferred through a messaging service. In India, WhatsApp, the largest market for WhatsApp with millions of users, has been allowed to launch financial services in November.
Using debit or pre-paid card numbers, the 120 million WhatsApp TSAP users in Brazil will be able to send each other 5,000 BRL (approximately Rs. 67,900) per month for free through the messaging service. Initially, the system will not allow each transaction to exceed BRL 1,000 (approximately Rs. 1,600) or more than 20 transfers per day.
Matthew Edema, chief rating officer Matthew Fischer, said in an interview that the rollout of the new facility would be phased out. Starting today, a limited number of users will receive a payment tool in their app. In addition, they will be allowed to invite new users.
Very excited to enable payments in WhatsApp and WhatsApp in Brazil today. This will gradually roll-out, but enable people ???????? Paying each other in a conversation will be just as easy as sending a text message! pic.twitter.com/3YQGdz74QK
– David Marcus (DavidMarcus) May 4, 2021
In June, WhatsApp launched its payment services in Brazil, but the central bank suspended it a few days later saying it could harm the country’s existing payment system in terms of competition, efficiency and data privacy.
In addition to reviewing the proposed payment network, the Financial Authority also requested the technology giant to be labeled as a financial services company in Brazil, suggesting Facebook create a unit called Facebook Pegmentos Dress Brasil, which is now controlled by the central bank.
But the central bank has not yet made a greenlight payment with merchants, which is expected to be a paid service, adding a new revenue line for WhatsApp. Last year, card payments in Brazil totaled BRL 2 trillion (approximately Rs 2,98,80,460 crore), an increase of 8.2 per cent over 2019.
Edema said talks with the central bank are still ongoing and Facebook expects merchant payments to begin this year, declined to comment on whether it will be a paid service.
“It’s interesting to launch Payment for WhatsApp as it will increase the use of the app,” the COO said.
WhatsApp launched its payment service in partnership with card networks Visa and MasterCard and payment processor CLO SA. It will work with cards issued by Bonco du Brazil SA, Bonco Inter, Bonco Bradesco SA, Itau Unibanco Holding SA, Fintech Nubenc, Mercado Librecana Mercado Pago Go and Cisiredi.
Thomson Reuters 2021