Facebook said it is holding regular conversations with the Central Bank of Brazil to restore its payment service to millions of its customers in the country two months after it banned WhatsApp Payment. There are over 120 million active Facebook users in the South American country.
The Brazilian government had in June 2020 announced the suspension of WhatsApp Payment barely a week after it was launched in the country. The Brazilian authorities said the decision was taken to ensure competition in the payment system market.
However, a Facebook spokesperson told BusinessDay on Wednesday that it is more than hopeful that the suspension would be lifted in Brazil.
“Due to the pandemic and the economic difficulties it has brought, we believe there is an urgent need for people to send money to one another as well as simply and securely purchases goods from their local business,” the company spokesperson said in an email response. “For nearly two years we worked to provide innovative payments functionality in Brazil working with local financial partners that have demonstrated a track record of meeting the standards set by the Brazilian Central Bank.”
The company also confirmed it is looking forward to bringing WhatsApp Payment to more countries including those in Africa to make it easier for people and businesses to send money and build their business.
Facebook has been gradually building a network of partners ranging from commercial banks to fintech firms in many African countries including Nigeria.
Importantly, the launch of WhatsApp Payment would help the profitability of the platform. Facebook which has struggled to make the messaging platform it bought in 2014 for $19 billion profitable.
According to mobile expert Eric Seufert founder of MobileDevMemo, WhatsApp is almost completely unmonetised. Facebook declined to comment on this assertion.
“WhatsApp is free to use the app for consumers and small businesses. We also have a WhatsApp Business API, our solution for larger businesses like an airline, ecommerce company, or bank. At the moment, the team is focused on building new features to help businesses achieve success, as well as providing payments in a number of countries,” said the company spokesperson.
When people reach out to receive support from a business or opt-in to receive useful information like a boarding pass or receipt, Facebook makes money by charging the businesses to send these types of messages.
Businesses are also able to buy Facebook or Instagram ads that ‘click to WhatsApp’ these allow businesses to add a ‘Send Message’ button to Facebook or Instagram ads that will open a conversation thread in the WhatsApp Business app. This allows customers to connect with the business on WhatsApp after clicking the button on the ad.
Over 5 million merchants around the world use the WhatsApp Business app according to Bloomberg.
