In June 2020, WhatsApp announced the arrival of WhatsApp Pay, the payment method via WhatsApp for individuals and businesses. But how does it work, and why did Brazil suspend the service after just a week?
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WhatsApp Pay is the new payment method integrated into the WhatsApp app.
The application owned by Facebook (which, let’s remember, bought WhatsApp in 2014 for the modest sum of 19 billion) seems to be following in the footsteps of WeChat, the most used messaging app in China. This app has long allowed users to carry out various operations, such as buying transport tickets, paying bills or even the bill at a restaurant, all without leaving the app.
WhatsApp Pay: What is it?
Let’s take a step back: WhatsApp is a messaging app for individuals (WhatsApp Messenger) and for small and medium-size businesses ( WhatsApp Business ).
WhatsApp Pay is the payment system built into the app, meaning users can make payments without leaving WhatsApp .
How does in-app payment work?
WhatsApp Pay uses UPI ( Unified Payment Interface ) technology and has a peer-to-peer interface. The payment platform develop by the National Payments Corporation of India works in real time and allows for easy transactions.
As the image above shows, WhatsApp Pay can be use for both person-to-person payments (for example, splitting a bill or gift) and for online or offline purchases.
Learn more: WhatsApp Business: the update guide
It works like this:
Users can link their WhatsApp account to a checking account or credit card.
Once they decide to make a payment, they are ask for confirmation. This can be done by entering a 6-digit code, by fingerprint or by facial recognition .
Payment thus takes place within the app and without redirects.
But is WhatsApp Pay safe?
After a long period of trials and tests in India, the country with the highest number of active users (400 million), WhatsApp Pay was launche in Brazil (120 million). However, the Spain WhatsApp Number List Central Bank of Brazil suspended WhatsApp Pay eight days after the launch .
Apparently, WhatsApp activated the service before allowing banks to analyze the functioning of the service and evaluate any conflicts with national regulations. It is suspected that a conflict of interest could arise with PIX , the digital payment system of the Brazilian central bank.
Data processing is also a matter of concern: the fear is that users’ personal and banking data could reach third parties. However, WhatsApp has repeatedly stated that end-to-end encryption is able to protect data and chats.
WhatsApp Pay: What Does It Mean for Your Business?
email-teaser-whatsapp_business_200x150While exchanging money between private individuals is free. Businesses that decide to offer this payment method will have to pay a 3.99% commission on transactions .
Nonetheless, WhatsApp Pay certainly represents WhatsApp Number Database an opportunity to facilitate payments for companies that decide to use this system. Making the purchasing process for their customers simple and fluid.
Especially during COVID-19, where there has been a boom in online sales , online payments are a trend that is expect to continue even after the emergency is over.
WhatsApp Pay: when will it arrive in Italy?
As WhatsApp announce on its blog , after Bulk Database launching the in-app payments service in Brazil, the goal was to make it available globally in the coming months.
Zuckerberg, during the presentation of Facebook’s financial results. Did not give a specific date for when the service would be available in Europe and Italy. But everything led us to believe that it would arrive within the next 6 months .
For now, the scenario is unpredictable. We can only wait and see how the situation will evolve in Brazil and if WhatsApp Pay will become part of the digital payments landscape.
