WhatsApp Pay: New payment service launched18. June 2020
WhatsApp Pay: New payment service launched
New York, 18.6.2020
WhatsApp launches WhatsApp Pay, a payment service for consumers and small businesses, in a first country.
According to an announcement by WhatsApp, WhatsApp Pay is now available for private individuals and small businesses in Brazil. Users there can use it to make digital payments directly from WhatsApp, for example to send money or pay for a purchase. This is also possible directly from WhatsApp chats.
When and whether the company will introduce WhatsApp Pay in other countries is still open. The fact that the service will also be available in other countries is clear from the announcement, which literally states: “The introduction of payments via WhatsApp in Brazil will begin today, and we are looking forward to making this function available to everyone.
In Brazil, says WhatsApp, it has become fully established for users to spontaneously contact small businesses and one-man businesses via WhatsApp chat to ask them a question about their offerings. Now users can also make payments directly from WhatsApp. “Simplifying payments makes it easier for many companies to enter the digital economy and provides them with new opportunities for growth,” explains WhatsApp.
WhatsApp Pay does not use any new technology for the technical execution of digital payments, but instead uses the existing payment service Facebook Pay. Once the card data has been stored, it can also be used on Facebook.
Transactions are only made via WhatsApp Pay after entering a six-digit PIN or after the user has been authorized by fingerprint. To start with, debit and Visa and Mastercard credit cards from Banco de Brasil, Nubank and Sicredi are supported. The company also works with Cielo, a leading provider of payment processing services in Brazil. Thanks to an open model, other partners could also participate.
Private users of WhatsApp Pay pay no fees. However, companies have to pay a processing fee for receiving customer payments, similar to credit card transactions.