US, WASHINGTON (ORDO NEWS) — In the messenger, the payment system will work again right inside the chats – transferring money will be as easy as sharing a photo. The service was previously blocked due to competition disputes.
On June 18, 2020, WhatsApp announced the launch of a great new service, namely the ability to transfer money through this application. The service was launched, but it had to be closed very quickly. Now he’s back.
The launch of this service was greeted with enthusiasm because it is the most convenient way to transfer money to a friend or colleague. It was first launched in Brazil, and WhatsApp representatives said that they plan to expand its reach to other countries after a while.
However, a week after the start of work, the service was blocked due to concerns about its possible impact on competition in the market. The central bank of Brazil considered that such a service could negatively affect Brazilian banks and financial technology companies and that there could be problems with the protection of personal data.
This service is revolutionary because it could be used by a huge number of people. Apple has a similar service – Apple Pay Cash – but it only works if the money transfer is between two Apple device owners. Meanwhile, WhatsApp is being installed on both iPhones and Android devices. The reach is astounding: More than half of Brazil’s 213 million people have WhatsApp installed on their smartphones.
Brazil’s central bank has now lifted its ban so that WhatsApp users can send money to each other using Visa and Mastercard.
WhatsApp was not registered as a financial services company in Brazil, and did not seek to do so, but pressure from the regulator meant that it needed to get permission. In the end, as Reuters reports, WhatsApp requested formal permission to act as the initiator of the payment, and now this messenger will use the Visa and Mastercard payment systems. These payment systems have received the necessary permissions to work with the WhatsApp application.
However, while the original plan was for WhatsApp users to be able to transfer money to legal entities, now this messenger is only allowed to make payments between two individuals. Meanwhile, Facebook is trying to get permission to work with trading companies. The launch date for the new service has not yet been announced, but WhatsApp officials said they are making final preparations to launch it as soon as possible.
Assuming that WhatsApp plans to expand its reach beyond Brazil, it could radically change the situation in India, which is likely to be the company’s next target and its largest market. This service can really revolutionize money transfers.
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