For the first time, Facebook is embedding its payments platform with WhatsApp. The tech giant is launching this service in Brazil.
After a long beta testing phase in India, Facebook is launching its in-app payments service in Brazil. This online payment platform is embedded in WhatApps, a highly popular messaging service in the country.
In a statement, WhatsApp says:
“Payments on WhatsApp are beginning to roll out to people across Brazil beginning today and we look forward to bringing it to everyone as we go forward.”
Facebook will charge no fees to users who want to use its service. Users only need to link a valid credit or debit card into their WhatsApp account to use it. On the other hand, merchants and vendors will have to pay a processing fee for them to receive payments.
In terms of security, all transactions are properly secured using a six-digit PIN. Users can also use their fingerprints to secure their transactions, provided they have the necessary hardware.
WhatsApp users in Brazil can now send money to friends and family or pay a business right from your chat 💸💸💸 pic.twitter.com/BwrcCq9CJW
— WhatsApp Inc. (@WhatsApp) June 15, 2020
Facebook says that its platform will support several banks in Brazil that offer credit and debit card services. These banks are Nubank, Banco do Brasil, and Sicredi. Additionally, the social media giant also confirms that it is working with local payment processor Cielo.
Digital payment on the rise
WhatsApp launched its peer-to-peer digital payment system way back in 2017. However, it took another year for the company to officially launch a closed beta in India in 2018. Considering that, many expect the company to launch in the country first.
It is important to note that Facebook is facing a lot of regulatory criticism in India. The company has a rocky history with the country, especially when it comes to free trade practices. In 2017, the company was the receiving end of a lot of criticism following its plan to offer its services for free.
Facebook bought WhatsApp for $19 billion in 2014. Since then, the social media giant continues to scale up its operation. As of this writing, WhatsApp has more than 2 billion users.
The Facebook Pay service is currently accessible in about 40 countries. However, the service is available only on the Facebook main app. In some countries, the Pay service is embedded into the Messenger mobile app.
This is the first time that the Facebook Pay service gets its way into WhatsApp, with the exception of the United States.
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