WhatsApp Announces Introduction Of Its Digital Payment System In Brazil
On Monday, Facebook-owned WhatsApp messaging service has finally rolled out the payment system in Brazil. This system will allow users to send money to individuals or local businesses within a chat. Users will be able to attach payment similar to how they attach photos or video.
WhatsApp had first tested its payment system in India at the beginning of 2018. Launch in Brazil will be the first nationwide rollout. It will introduce the ability to directly pay to businesses. Whatsapp has over 120 million individual users in Brazil. It is the second-largest market after India.
In the blog post, WhatsApp said that payments service is currently free for its consumers to use. However, businesses pay a processing fee of 3.99% to receive payments. To complete transactions, it will work by way of fingerprint or six-digit PIN.
“Brazil’s many small businesses already use WhatsApp as a marketing tool to answer questions or send catalogs,” Matt Idema, chief operating officer of WhatsApp, said of Brazil. “WhatsApp is heavily used there, both by people and small businesses.”
He further added, “We think we can help grow digital payments, help grow the digital economy with small businesses, and help support financial inclusion.”
Users can start by linking up their WhatsApp account with their Visa or Mastercard credit or debit card. Cielo, a payments processor, is helping complete transactions. WhatsApp is also working with initial local partners including Nubank, Banco do Brasil and Sicredi. “We have built an open model to welcome more partners in the future,” it noted.
In April, Mark Zuckerberg, Facebook’s Chief Executive, said that the company is expanding its tools for businesses in WhatsApp.
“We can’t have the kind of interactions with each other than we normally would, if you want to lend someone cash or if you want to buy something from a local business,” he said.
The system for payment will utilize Facebook Pay. It will also be free for individual users and charge businesses a fee for receiving payment