- Facebook, Inc. (NASDAQ: FB) is now offering a payments service through WhatsApp
Facebook, Inc. (NASDAQ: FB) is now offering a payments service through WhatsApp. This feature is starting out in Brazil and it is expected to expand to other regions shortly after. Facebook Pay is the backend platform that powers payments in WhatsApp.
It was reported earlier that WhatsApp payments would be available in India first since it received approval from government officials there. It is in private beta in India now.
Regardless, the launch of payments in WhatsApp in Brazil is a big deal since it marks the first time that Facebook is significantly planning to significantly monetize the messaging service at scale since it was acquired for $19 billion several years ago.
Facebook Pay can be accessed in about 40 countries around the world, mostly in the main Facebook app. In the U.S., Facebook Pay is also available through Messenger.
In a statement to VentureBeat, a WhatsApp spokesperson had confirmed that the payment feature will be rolled out in more countries in the future. But the spokesperson did not give a timeline about where it will be headed next.
With the payment feature in WhatsApp, anyone in Brazil can use the messaging app to buy products from local businesses and transfer money with their contacts. The payment service has support for debit and credit cards. Initially, the feature is limited to Banco do Brasil, Nubank, and Sicredi on the Mastercard and Visa payment networks.
The card data is encrypted through the PCI standard. And users are required to input a Facebook PIN or use a fingerprint to authorize payments.
WhatsApp is charging a 3.99% fee per transaction. This includes payment processing, chargeback protection, and merchant support fees.
Merchants who want to use Facebook Pay via WhatsApp have to set up a WhatsApp Business account profile.
