This archive report was first published on 17 June 2020.
June 17, 2020 - WhatsApp, the Facebook-owned instant messaging application, has launched digital payments to its users in Brazil, marking a significant move in the global mobile payments landscape.
The new feature allows users to send money securely or make a purchase from a local business without leaving their chat, a functionality that China's WeChat has been offering for years.
According to WhatsApp, the move aims to bring more businesses into the digital economy, opening up new opportunities for growth. The firm stated, "The over 10 million small and micro-businesses 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 as well."
WhatsApp is also making sending money to loved ones as easy as sending a message, which could not be more important as people are physically distant from one another. The firm aims to make it possible for people and businesses to use the same card information across Facebook's family of apps.
For security, there is a special mix of a six-digit PIN or fingerprint required to prevent unauthorized transactions. The platform is now supporting debit or credit cards from Banco do Brasil, Nubank, and Sicredi on the Visa and Mastercard networks.
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 may already pay when accepting a credit card transaction.
