[Asia Economy Reporter Kwon Jae-hee] WhatsApp, the messaging application owned by Facebook, is launching its digital payment service 'WhatsApp Pay' for the first time in Brazil, which has 120 million users.
According to major foreign media on the 15th (local time), Facebook is launching the WhatsApp Pay service in Brazil on this day. WhatsApp, acquired by Facebook in 2014 for $19 billion, is a messaging app, and WhatsApp Pay is a digital payment service that allows users to send money and make payments through the app free of charge without any fees. However, businesses and sellers must pay a 3.99% transaction fee.
To provide this service, Facebook has signed agreements with local banks such as Banco do Brasil, Nubank, Sicredi, and payment settlement company Cielo.
Earlier, Mark Zuckerberg, CEO of Facebook, announced plans to introduce WhatsApp Pay first in four emerging markets: Brazil, Mexico, Indonesia, and India. This decision is part of that initiative and marks the first case of nationwide service of WhatsApp Pay. Facebook aims to secure early capital in emerging markets and strengthen its influence in the mobile market by introducing e-commerce services on its platform.
Facebook had already launched a similar service, Facebook Pay, in November last year. Last month, it also launched Facebook Shops, an e-commerce service. To compete with Amazon, the undisputed leader in e-commerce, Facebook is making various efforts to promote more transactions on its platform and collect data on spending patterns. Facebook plans to integrate WhatsApp Pay with Facebook Pay in the future.
WhatsApp stated, "Simplifying payments will allow more businesses to enter the digital economy, which will become a new growth engine. Moreover, we are making sending money to loved ones as easy as sending a message, which is especially important because people are physically apart."
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