Brazil’s nationwide termination of Facebook’s WhatsApp payment service is a kick in the teeth for the latter, mainly because Brazil is the second-largest user of the app after India. It was the payment system rolled out by Facebook for the first time throughout the nation.
Why did the Central Bank of Brazil terminate WhatsApp Pay?
Justifying the step, Brazil’s Central Bank says that it is attempting to “preserve an adequate competitive environment” in the payment industry. Moreover, it has asked WhatsApp Pay’s payment partners, such as Visa, Rupay, and MasterCard, etc.., to hold their services back in the nation. If they fail, Fines and penalties will follow.
Besides, Facebook debuted the payment method in India about two years ago. And, it is yet to receive a green signal from the government for a national roll-out.
What services does Facebook-owned WhatsApp Py offer?
Not only will the payment platform enable users to transfer and receive money, but it also makes business payments. There is no fee to avail its service as yet. Although, the businesses can engage themselves by paying a price of 3.99% to receive payments.
As per reports by Bloomberg, there are over 5 million WhatsApp Business users, which is a business replica of the regular WhatsApp application and it will continue.
Does the Central Bank of Brazil have an in-house payment service?
While Brazil has shelved the service, it will continue to analyze the seeming threats that cripple its payment framework. Furthermore, its Central Bank is on the lookout to launch its in-house payment method, PIX.
However, a WhatsApp representative confirmed that the company is on board with the decision of the bank. Not only that, but they also support PIX and will be more than happy to work in partnership with Brazil. The company can wait until the launch of PIX.