This archive report was first published on 26 June 2020.
On June 26, 2020, Brazil's central bank effectively suspended WhatsApp's newly-launched payments system, which allowed users to send money via chats.
The central bank ordered Visa and Mastercard to halt payments and transfers via the system, citing concerns that rolling it out without previous analysis could damage the Brazilian payments system in areas of competition, efficiency, and data privacy.
WhatsApp had launched the service in a nationwide rollout, allowing users to transfer funds to individuals or local businesses within a chat, attaching payments as they would a photo or video.
According to the central bank, if Visa and Mastercard do not comply with the order, they would be subject to fines and administrative sanctions.
WhatsApp spokesperson stated that the messaging service would continue working with 'local partners' and the central bank to provide digital payments for its users in Brazil using a business model open to more participants.
Some observers called the regulator's decision an overreaction, while others said WhatsApp presented a potential risk in terms of market concentration and privacy.
