WhatsApp Money Transfers Relaunched in Brazil, Facebook CEO Zuckerberg Announces

Brazil is the second country where WhatsApp has launched money transfers, after India.

By Reuters | Updated: 5 May 2021 14:20 IST

WhatsApp Money Transfers Relaunched in Brazil, Facebook CEO Zuckerberg Announces

Photo Credit: Twitter/ @davidmarcus

Starting today, a limited and undisclosed number of users will get a payment tool in their app

Highlights

The roll out of the new feature will be phased
In June, WhatsApp had launched its payments services in Brazil
The central bank suspended it some days later

Facebook's WhatsApp messaging service relaunched on Tuesday its transfer money services between individuals in Brazil, after it was blocked by the central bank nearly one year ago, Chief Executive Mark Zuckerberg said in a Tuesday video.

Brazil is the second country where the messaging service launched money transfers. In India, WhatsApp's biggest market with 400 million users, it got approval to start financial services in November.

By using debit or pre-paid cards numbers, WhatsApp's 120 million users in Brazil are able to send each other up to BRL 5,000 per month (roughly Rs. 67,900) through the messaging service free of charge. Initially, the system will not allow each transaction to surpass BRL 1,000 (roughly Rs. 1,600) or more than 20 transfers per day.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

The roll out of the new feature will be phased, Chief Operating Officer Matthew Idema said in an interview. Starting today, a limited and undisclosed number of users will get a payment tool in their app. With that, they will be allowed to invite new users.

Very excited to start enabling Payments in WhatsApp in Brazil today. This will be a gradual roll-out, but enabling people in ???????? to pay one another in conversations as easily as sending a text message is going to be so useful! pic.twitter.com/3YQGdz74QK
— David Marcus (@davidmarcus) May 4, 2021

In June, WhatsApp had launched its payments services in Brazil, but the central bank suspended it some days later alleging it could damage the country's existing payments system in terms of competition, efficiency and data privacy.

In addition to reviewing the proposed payments network, the monetary authority also requested the technology giant be labeled as financial services company in Brazil, prompting Facebook to create a new unit called Facebook Pagamentos do Brasil, which is now regulated by the central bank.

WhatsApp Says Brazil Central Bank Willing to Restore Payments Service

But the central bank has not yet greenlit payments with merchants, which is expected to be a paid service, adding a new line of revenue for WhatsApp. Last year, card payments in Brazil totaled BRL 2 trillion (roughly Rs. 2,98,80,460 crores), up 8.2 percent from 2019.

Idema said talks with the central bank are still ongoing and Facebook expects the launch of merchant payments to occur this year, declining to comment on whether it will be a paid service.

"For WhatsApp launching payments is interesting because it increases the app usage," the COO said.

WhatsApp started its payment service in partnership with card networks Visa and Mastercard and payments processor Cielo SA. It will operate with cards issued by Banco do Brasil SA, Banco Inter, Banco Bradesco SA, Itau Unibanco Holding SA, fintech Nubank, MercadoLibre's Mercado Pago, and Sicredi.

Is Mi 11X the best phone under Rs. 35,000? We discussed this on Orbital, the Gadgets 360 podcast. Later (starting at 23:50), we jump over to the Marvel series The Falcon and the Winter Soldier. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.