WhatsApp, the $ 19 billion Facebook-acquired company, has unveiled its long payment feature, which will allow users of the messaging app to send and receive money.
The new feature was launched on Monday in Brazil, a country with around 120 million users of the application, the second largest after India, which has around 400 million users.
In 2018, WhatsApp first tested digital payments in India, but the Brazil launch is the first launch nationwide.
The trial launched in India in 2018 was developed by the National Payments Corporation of India (NPCI) and was called WhatsApp Pay.
The new launch which is expected to spread worldwide is powered by Facebook Pay and allowed ppeople and small businesses in Brazil to make payments through the application to your contact list.
According to Matt Idema, director of operations for WhatsApp; “Sending money or making a purchase on WhatsApp is free for people. Businesses will pay a processing fee to receive customer payments, similar to what they can already pay when accepting a credit card transaction. “
For security, the messaging app promoted its end-to-end encryption (although some concerns recently came up) stated that the payment feature will require a six-digit PIN or fingerprint to authorize transactions.
Idema spoke on the card of the banks approved for the payment function in Brazil, he said; “To start, we will support debit or credit cards from Banco do Brasil, Nubank and Sicredi in the Visa and Mastercard networks, and we are working with Cielo, the leading payment processor in Brazil. We have built an open model to welcome more partners in the future. “
The company gave no clue about the next country on its list when it comes to launching the payment feature.
In its 2019 report, The Global State of Digital reported that more than 20 million Nigerians were active WhatsApp users.
Many small companies in Nigeria promote their products on the platform. This is due to its cost-free promotional model and ease of distribution.
Most of these sellers (in Nigeria) use bank requests and direct deposits to receive payment for orders via WhatsApp today; Except for those who place orders through sellers’ websites, these buyers are more likely to use the provided payment gateway.
The rapid growth of WhatsApp in Nigeria is for no other reason than the costly cost of sending text messages.
The application does not contain advertising and appears without a model to generate income for your company.
In January 2016, Facebook had hinted that the monetization strategy employed by the app will change.
WhatsApp payment function may be the final answer.