WhatsApp’s new payment service goes live in Brazil

WhatsApp, a popular messaging app owned by Facebook, recently rolled out its payment service in Brazil. The rollout comes two years after the developers originally tested the beta version of the feature in India.

WhatsApp’s payment feature goes live

The new feature is intended for both, individual and business use. It allows users to receive or send funds within WhatsApp itself, without having to use any third-party app.

The introduction of the feature in Brazil also makes sense, considering that the app has over 120 million users in the South American country. In fact, Brazil is WhatsApp’s second-largest market, bested only by India itself.

The feature was enabled through Facebook Pay, while all the transactions that the users will make are going to be processed by Cielo, a payment processor that is also based in the country. Furthermore, users can initiate payments via credit or debit card.

At the moment, WhatsApp supports Mastercard and Visa cards, issued by three banks — Sicredi, Banco do Brasil, and Nubank.

The feature is also completely free for individuals, although there will be a processing fee of 3.99% for businesses. All transactions will be secured by a fingerprint or a six-digit PIN code.

WhatsApp payments to arrive in other countries

Facebook’s CEO, Mark Zuckerberg, commented on the new feature by saying that sending funds is as easy as sharing photos. He also confirmed that the feature will soon go live in other countries, and that Brazil is only the beginning.

Of course, the feature will only be launched in countries where Facebook Pay itself is currently live, such as the UK and the US.

One thing worth noting is that the launch in Brazil came as a bit of a surprise, considering that WhatsApp did its testing in India. The reason for this seems to be a legal matter in India, which emerged due to a complaint filed against WhatsApp.

The complaint suggests that the company’s introduction of a payment feature into the app could violate India’s antitrust laws, and harm competition. The complaint is currently still unresolved, and it is looked into by the Competition Commission of India.

Lastly, Zuckerberg also noted that the feature might also make use of Facebook’s upcoming stablecoin, Libra. This would make things even simpler for the users, while making advertising more effective.