Facebook's messaging platform WhatsApp has launched its digital payment service in Brazil, to take advantage of its popularity in emerging markets.
Facebook's WhatsApp Pay digital payment service will enable users in Brazil to send money to one another for free or buy from small businesses. The move is part of the tech giant's plan to bring more e-commerce to its platforms.
WhatsApp and WhatsApp Pay
In January, Facebook chief executive officer (CEO) Mark Zuckerberg announced plans to provide the service in India, Indonesia and Mexico.
WhatsApp wrote on its blog that the launch was part of a wider digital payment strategy being implemented across all of Facebook's platforms.
The company said: "Because payments on WhatsApp are enabled by Facebook Pay, in the future we want to make it possible for people and businesses to use the same card information across Facebook’s family of apps."
According to the blog, person-to-person payments will be free of charge but small businesses will have to pay a “processing fee to receive customer payments."
Currently, Brazil has 120 million WhatsApp users, making it the firm's second-largest market after India.
In February, WhatsApp reached two billion users worldwide, up from 1.5 billion users by the end of 2017.
WhatsApp is known for its end-to-end encryption technology, which ensures that all contents in chats are secured by default. According to WhatsApp’s blog posts, the technology ensures that even the company can’t read messages or listen to calls that take place among the participants of conversations.
While the technology appeals to its users, it has drawn backlash across the globe due to security concerns.
India's market
WhatsApp's biggest market is in India, where it has 400 million users. It has been trialing the payment service in the country but regulators have held up the launch of WhatsApp Pay for two years.
In April, Facebook acquired a 9.99% stake in Indian billionaire Mukesh Ambani’s digital technology business Jio Platforms for $5.7 billion.
The deal will give the tech giant a key foothold in India, one of the world’s fastest growing internet markets. Jio Platforms is the tech arm of Ambani’s conglomerate Reliance Industries.
Jio Platforms provides various services under its umbrella, including the mobile network Reliance Jio. It has signed up almost 390 million subscribers since its launch three and a half years ago.
JioMart is Reliance’s retail arm, which is forming a partnership with Facebook-owned messaging platform WhatsApp that could potential enable Facebook to monetize WhatsApp’s users in India.
Ambani expressed that Reliance is “humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India.”
In a statement, Facebook’s chief revenue officer David Fischer and vice president and managing director for India Ajit Mohan emphasized: “This investment underscores our commitment to India, and our excitement for the dramatic transformation that Jio has spurred in the country.”
They also said that the firm plans to focus on the partnership between WhatsApp and Reliance’s e-commerce venture JioMart to enable people to connect with businesses, shops and purchase products.
