This archive report was first published on 15 June 2020.
On June 15, 2020, WhatsApp launched its payment platform in Brazil, marking a significant milestone in the country's digital economy.
The new payment option allows users to link their WhatsApp account to a credit or debit card and local banks and payment processors, enabling them to send and receive payments for free. However, businesses will pay a processing fee to receive payments from customers.
According to WhatsApp, the payment option will help enhance earlier tools on the platform, including the catalogue feature launched last year. This feature allows businesses to showcase their products and prices, and the payment option will now complete the customer journey, allowing a business account to operate as a micro e-commerce site.
“Now, in addition to viewing a store’s catalogue, customers will be able to send payments for products as well. Making payments simple can help bring more businesses into the digital economy, opening up new opportunities for growth,” reads a WhatsApp blog post.
Users in Brazil will require a six-digit pin, or a fingerprint to authorize transactions. Currently, the platform accepts Visa Cards and Mastercards from three banks and a payment processing platform, but the company is looking to engage more partners in the future.
“We have built an open model to welcome more partners in the future. Payments on WhatsApp are beginning to roll out to people across Brazil beginning today, and we look forward to bringing it to everyone as we go forward,” said Facebook, the parent company of WhatsApp.
The payment platform will run on Facebook Pay, a feature on Messenger that allows friends to send money to each other. In future, Facebook will let users share card information across its portfolio of apps.
Brazil is the second biggest country for the messaging platform after India, with over 120 million users in the country.
