WhatsApp launches payments for Small Business owners in Brazil

WhatsApp launches payments for Small Business owners in Brazil

Trading just got even easier for Small Business owners! Once again, Facebook has proven to be the hope of their tomorrow.


Yesterday, WhatsApp, which is owned by Facebook, introduced digital payments to its users in Brazil. The country is the app’s second-largest market with 120 million monthly active users. However, it has over 10 million micro-businesses as the heartbeat of its communities. Thus, making payments simple would help to bring more businesses into the digital economy. This allows for growth and expansion. Furthermore, this would have a great audience because of size. Popular competitors such as Google Pay, are not offering payments within a messaging app in the country.


In addition to viewing catalogs, people can now purchase products from a small business without leaving their chat. This is possible by linking up your WhatsApp account to your Visa or MasterCard credit or debit card. Banks on these networks include Banco do Brasil, Nubank, and Sicredi. WhatsApp is also working with the leading payment processor in the country; Cielo and is looking to work with more partners in the future.


Businesses are expected to pay a 3.99% processing fee to receive payments. Unauthorized transactions are prevented by way of unique six-digit PIN or fingerprint. Hence, security is guaranteed. 


According to TechCrunch, WhatsApp has been working on the theory of implementing payments for years. Now that it’s been launched with Facebook Pay, it is evident how the struggle turned out! Certainly, by implementing transactions WhatsApp and Facebook have yet another chance to develop a revenue stream that suits their vast scale!


Image credit: WhatsApp 


It is uncertain whether WhatsApp has taken into consideration the emerging markets, which do not use payment cards and bank accounts. Although it seems they have considered other kinds of transactions such as remittances (where people transfer money to friends, family, and businesses that are distant). These are some of the more popular uses of phones beyond simple calls and texts.


Presumably, this is why WhatsApp will make sending money to loved ones as easy as sending a message, as people are physically distant from one another. Because payments on WhatsApp are enabled by Facebook Pay, in the future it will be possible for people and businesses to use the same card information across Facebook’s family of apps.


“Payments on WhatsApp are beginning to roll out to people across Brazil and we look forward to bringing it to everyone as we go forward,” the company announced. We definitely cannot wait for this feature to be deployed in Nigeria.

About the Author /


Omotoke Tinde is a writer and editor at Drive Hub. She is a graphic artist who is passionate about design which leads her to build her own brand and that of others.

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