Re-introduced a Brazilian feature allowing users to send money to each other after an initial attempt Blocked by regulators And now the market is pushing for the introduction of business payments.
The Facebook-owned messaging app on Tuesday said it would bring back free person-to-person transfers to the South American country, the second-largest market with its 120 million users, as it plans to pay for business in the country.
Last June, Latin America’s largest economy initially hosted the first nationwide rollout of WhatsApp’s P2P delivery. However, the service was abruptly shut down a week after it was launched by the Brazilian central bank, citing concerns about competition, efficiency and data privacy, and asking Visa and MasterCard to stop the payment process through the application.
Due to concerns over the density of the country’s unreliable regulatory market, the transaction processor has suspended WhatsApp’s partnership with Ciello.
WhatsApp said at the time that it believed officials were concerned that the service could compete with Pix, the central bank’s own instant money service that is free to use for individuals and was launched later in the year.
The launch came after Brazil’s central bank recently licensed a local Facebook subsidiary to provide P2P for the WhatsApp scheme. It will include eight banks, including the country’s largest private sector provider, Ita, compared to just three in the first round.
Upon relaunch, the P2P payment service will be available primarily in Rio de Janeiro and Sওo Paulo for one of eight banks under the Visa and MasterCard banners – debit, prepaid or combo cards – for people attending debit and credit functions, but credit Not a card.
“Sending money as easily as sending a message to everyone and empowering them to gain access to the global financial system in the digital economy is part of our mission,” said Matt Edema, WhatsApp’s Chief Operating Officer.
What will be the first for the technical firm, it said, is that it has discussed with the central bank of Brazil about expanding the service to enable money transfers to businesses. The move comes as WhatsApp stepped up efforts to introduce more online shopping into its apps during the carnivirus epidemic.
The convenience of e-commerce will allow the platform to tap new ad streams and collect data to increase the value of its existing ads, says Facebook CEO Mark Zuckerberg, Says. But the app’s new terms of service make it clear that it will share more data with its parent company, and after the app’s new terms of service were introduced, the push for e-commerce has already raised privacy concerns on WhatsApp. Spoken Many users of it.
Late last year, WhatsApp received approval for the first full rollout of its full-service service. India, Its largest market, followed by extended delays. WhatsApp is also pushing to launch the service in Mexico and Indonesia.
The Silicon Valley brand’s second knife in Brazilian payments, where mainstream banks traditionally charge fees for money transfers and current accounts, is matched by increased competition from fintechs, a low-cost or free digital service provider.
Directed by Sialo, the feature will be enabled via Facebook Pay, a service similar to the social media platform. A Brazilian phone number is required and transactions are permitted only within the country and in local currency. A person can send another 1000 1,000 (3 183) per transfer and receive 20 transactions a month, with a cap of $ 5,000 per month.
“Seventy percent of Brazilians who have a bank account can use it [our] Service and we will add more banks in the future, ”said Idema.