Whatsapp pay has been the talk of those that know the importance of sending and receiving money easily on WhatsApp, Whatsapp announced that it would be launching its payment system so that users can quickly pay other users via Whatsapp, making it the most accessible mode of payment that will be started.
But today the Facebook-owned messaging app has announced that users in Brazil would be the first to use this services that others have been waiting for, the will be able to send and receive money by way of its messaging app, using Facebook Pay, the payments service WhatsApp owner Facebook launched last year.
WhatsApp added in its blog post that the payments service, which currently is free for consumers to use (that is, no commission fee taken) but businesses pay a 3.99% processing fee to receive payments — will work by way of a six-digit PIN or fingerprint to complete transactions.
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Whatsapp also explained how a user would be using the new Whatsapp payment services, Whatsapp said that you would be able to use the services by linking up your WhatsApp account to your Visa or Mastercard credit or debit card, with initial local partners including Banco do Brasil, Nubank, and Sacred.
Cielo, a payments processor, is also working with WhatsApp to complete transactions. “We have built an open model to welcome more partners in the future,” Though WhatsApp had been testing its payments service among users in India for a couple of months now which made so many people feel that the world’s second-largest internet market would be the debut region for the service.
The problem many seems not to see was that Facebook remains stuck in a regulatory maze in India that has been a stumbling block for the company expanding the payments service beyond a small, limited launch, in what is otherwise the app’s biggest market in terms of users.
India has 400 million monthly active users, while the second-largest market Brazil has 120 million monthly users.
No doubt that there are numbers of other digital payments services that has been around for a very long time which includes, Google Pay and Paytm, PayPal payment, Payoneer and others but there are no clear, and popular competitors offering payments within a messaging app making it the competitor has to be nothing, meaning that Whatsapp pay will rise to the top immediately it is launched around the world and users can now use it anywhere the is.
Whatsapp Pay Uses
WhatsApp had been used informally by small business owners to interact with their customers and clients, they have used the messaging app to exchange messages with users around the sale of goods, what is in stock, and so on.
But under the Facebook pay services in which Facebook, which acquired the company in 2014 for $19 billion — WhatsApp started in earnest the big task of bringing in a more formal set of business services.
But with Whatsapp payments services, which currently has amassed over 2 billion active users, is finally taking a more comprehensive commercial plunge, giving people not just a place to chat about a product, or even send payment details, but now to actually transact.
This also will provide WhatsApp and Facebook with another medium in which will build than a significant revenue just as PayPal has been doing for years based on its vast scale, one which does not turn the app over to monetizing its users through ads and the data that is amassed around them — the primary business model today behind Facebook and Instagram, another major app in the Facebook stable.
At the announcement, Whatsapp told Brazillian user that Users that they will be able to use the payments service on WhatsApp to make purchases from local businesses without even leaving their chat, or also going to Facebook to do that.
This will help the over 10 million small and micro businesses that are in the country are the heartbeat of Brazil’s communities. It’s become second nature to send a zap to a business to get questions answered.
Now, in addition to viewing a store’s catalog, customers will be able to send payments for products and services,” the company wrote in the announcement blog post.
For launching the service in other countries around the world, it’s not very clear whether Facebook will be open to working with different kinds of payment methods or starting Whatsapp pay there anytime soon, or even other payment rails beyond Facebook Pay, or what types of use cases it will pursue the service — although the trial in India, using UPI, implies that it won’t just be a one-size-fits-all approach.
Whatsapp Pay Annoucement
The CEO of Facebook Mark Zuckerberg added, “We’re continuing to roll out Facebook Pay on Facebook to more countries outside the U.S. for existing payment experiences, which vary by country and may include experiences such as in-game purchases and fundraisers were already available,” a Facebook spokesperson said. “As we’ve said previously, our goal is to bring Facebook Pay to more people and places over time.”
Source: Facebook
