Facebook Moves into Fintech Space, Commences Payments Service in Brazil
Facebook-owned WhatsApp has finally launched its instant payments service for users in Brazil.
In a statement released by WhatsApp, the payments service integrated into WhatsApp is presently free for consumers to use but businesses will pay a 3.99 percent processing fee to receive payments.
Also, WhatsApp said the payments service will work by way of a six-digit PIN or fingerprint to validate and complete payments.
“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,” the company stated.
WhatsApp partners Banco do Brasil, Nubank and Sicredi banks to allow users to link their Visa or Mastercard credit or debit card to their WhatsApp accounts in order to access the service. The messaging App also partnered Cielo, a payments processor, working with WhatsApp to complete transactions. “We have built an open model to welcome more partners in the future,” it stated.
Users in the country do not have to leave their chat to make purchases from local businesses or enter details to make payment once their accounts are linked to their WhatsApp accounts, they only need to validate transactions through digital pin or fingerprint.
“The over 10 million small and micro businesses are the heartbeat of Brazil’s communities. It’s become second nature to send a zap to a business to get questions answered. Now in addition to viewing a store’s catalog, customers will be able to send payments for products as well,” the company wrote in the statement.
WhatsApp is working on extending the payments service to other countries depending on their regulation and restrictions. A move Investors King experts are predicting could hurt the growth of fintech companies in Nigeria and other emerging nations given WhatsApp reach in those countries.
