This archive report was first published on 24 June 2020.
On June 23rd, 2020, Brazil's Central Bank took a bold step to safeguard its payment system by ordering Visa and Mastercard to halt the rollout of WhatsApp Payments. The decision was made in response to fears that the service would be anti-competitive, threatening the country's digital payment landscape.
The Central Bank emphasized the need to preserve a competitive environment that ensures the functioning of a payment system that is fast, secure, transparent, open, and cheap. To achieve this, the bank will evaluate possible risks associated with WhatsApp Payments to the country's payment system and assess whether Facebook's payment system meets the necessary regulatory requirements.
Additionally, the bank expressed concerns over data privacy and efficiency, warning Mastercard and Visa of possible fines if they failed to comply with the order. This move is seen as a significant blow to Facebook's plans to introduce commerce on the messaging platform.
Interestingly, the Central Bank had proposed its own instant payments system, Project Pix, in February 2020. This system aims to enable peer-to-peer money transfers, bill payments, and payments for service fees. Users can complete payments by scanning a QR code or using an address key.
WhatsApp has pledged its support for the country's digital payments system, promising to work with local partners and the central bank. The company has also expressed its willingness to integrate its system with Pix once it goes live. A WhatsApp spokesperson stated,
