WhatsApp is letting consumers in Brazil pay businesses directly through the Meta-owned messaging app. This has been years in the making, after previous unsuccessful attempt.
Regulatory Roadblocks
Meta first rolled out peer-to-peer payments in Brazil in 2020, where WhatsApp users were able to send funds to their contacts via the app. However, that was halted due to regulatory constraints.
Previously, WhatsApp users could pay merchants by using a merchant-generated payment link that was sent on the app. Users were not too keen on using this method as it proved to be troublesome, with too many steps.
On its blog, WhatsApp noted that:
“This seamless and secure checkout experience will be a game-changer for people and small businesses looking to buy and sell on WhatsApp without having to go to a website, open another app or pay in person. We’re rolling out today to a small number of businesses and will be available to many more in the coming months.”
Improving Business Transactions in Brazil
Last year, WhatsApp released a directory of participating businesses that enable users in Brazil to search for food and drink to travel merchants. Users can then make a selection of the items they want to purchase and do so directly within WhatsApp.
WhatsApp users can pay by using Mastercard and Visa debit, credit, prepaid cards issued by participating banks. For businesses to accept these payments, they can link a service providers Mercado Pago or Cielo to their account, as they already have the necessary peer-to-peer infrastructure on WhatsApp in Brazil.
P2P payments and use cases continue to make a significant gains, thanks to growing adoption of mobile and e-commerce payments.
