Using debit or pre-paid card numbers, 120 million WhatsApp users in Brazil can send each other for free via the BRL 5,000 per month (approx. Rs. 67,900) messaging service. Initially, the system will not allow each transaction to exceed BRL 1,000 (approx. Rs. 1,600) or more than 20 transfers per day.
The role of the new feature will be phased out, Chief Operating Officer Matthew Idima said in an interview. Starting today, a limited and unknown number of users will get a payment tool in their app. With this, they will be allowed to invite new users.
Today we are very excited to enable payment in WhatsApp in Brazil. This will be a gradual roll-out, but in enabling people ???????? Paying each other in a conversation is going to be very useful as easily sending a text message!
Very excited to start enabling Payments in WhatsApp in Brazil today. This will be a gradual roll-out, but enabling people in 🇧🇷 to pay one another in conversations as easily as sending a text message is going to be so useful! pic.twitter.com/3YQGdz74QK
— David Marcus (@davidmarcus) May 4, 2021
– David Marcus (@davidmarcus)
In June, WhatsApp launched its payment services in Brazil, but the central bank suspended it a few days later, alleging that it damaged the country’s current payment system in terms of competition, efficiency and data privacy Can.
In addition to reviewing the proposed payment network, the Monetary Authority requested the technology giant to be quickly labeled as a financial services company in Brazil. Facebook to create a new entity called Pagamentos do Brasil, which is now regulated by the central bank.
But the central bank has yet to make greenlight payments with merchants, which is expected to be a paid service by adding a new line of revenue for WhatsApp. Last year, card payment in Brazil was BRL 2 trillion (about Rs. 2,98,80,460 crore), up 8.2 percent by 2019.
Idema said talks with the central bank are still ongoing and Facebook expects merchant payments to begin this year to comment on whether it will be a payment service.
The COO said, “WhatsApp is interesting for launching payments because it increases the use of the app.”
WhatsApp launched its payment service in partnership with Card Network Visa and MasterCard and Payments Processor Cielo SA. It will work with cards issued by Banco do Brasil SA, Banco Inter, Banco Bradesco SA, Itau Unibanko Holding SA, Fintech Nubank, MercadoLibre’s Mercado Pago, and Cicconi.