WhatsApp has restarted a feature in Brazil that allows users to send money to each other after the first attempt Blocked by regulators And is now working hard to introduce business payments in the market.
The messaging app owned by Facebook said on Tuesday that it will follow South American countries, the country’s second largest market with 120 million users, and the country will transfer money from person to person for free. .
Latin America’s largest economy initially hosted WhatsApp to launch P2P payments nationwide for the first time in June last year. However, the service was suddenly interrupted a week after its debut because the Brazilian central bank asked Visa and Mastercard to stop processing payments for the app, citing concerns about competition, efficiency and data privacy.
The country’s antitrust regulator also suspended WhatsApp’s cooperation with transaction processor Cielo due to market concentration issues.
At the time, WhatsApp stated that it believed officials were concerned that the service might compete with Pix, the central bank’s own instant payment service, which is free for individuals and will be launched later this year.
The restart came after the Brazilian central bank recently granted P2P payment permission to the local Facebook subsidiary for the purposes of the WhatsApp program. It will now include eight banks, including Itaú, the country’s largest private sector bank, compared to only three in the first round.
After the restart, the P2P payment service will first be provided in Rio de Janeiro and São Paulo, applicable to debit cards, prepaid cards or combination cards of one of the eight banks with Visa and Mastercard banners (combined debit and credit functions) , Not a credit card.
Matt Idema, chief operating officer of WhatsApp, said: “This is part of our mission to enable everyone to send money as easily as a message and gain access to the financial system of the digital economy.”
This will be the first time for the technology company. It also said that it is negotiating with the Central Bank of Brazil to expand the service to transfer funds to companies. The move comes as WhatsApp stepped up its efforts to introduce more online shopping into its app during the coronavirus pandemic.
Facebook CEO Mark Zuckerberg (Mark Zuckerberg) Say. However, after the app introduced new terms of service and made it clear that more data will be shared with the parent company, the entry into e-commerce has caused greater concern about privacy issues on WhatsApp. Scared Many of its users.
In the second half of last year, WhatsApp was approved, and its first full-scale payment service India, Its largest market, due to extended delays. WhatsApp is also promoting the launch of the service in Mexico and Indonesia.
The Silicon Valley brand’s second payment sprint in Brazil is where mainstream banks traditionally charge remittance and checking account fees. At the same time, competition from fintech companies that provide low-cost or free digital services is also intensifying.
This feature is operated by Cielo and will be enabled through Facebook Pay, a similar service on the social media platform. Must provide a Brazilian phone number, and only allow transactions in the local currency within that country. One person can send a maximum of 1,000 reais ($183) per transfer, and can receive 20 transactions a day, with a monthly limit of 5,000 reais.
“70% of Brazilians with a bank account can use [our] Services, we will add more banks in the future. “Idema said.