WhatsApp expected that its method of payments will be used by people to pay businesses and transfer money to each other individually. The service is free to individuals, but charges companies a processing charge of 3.99 percent. WhatsApp is often the main online presence for many small enterprises in countries such as India and Brazil. According to Bloomberg, over 5 million customers worldwide are utilizing the corporate edition of the device.
Bloomberg notes that the judgment of the Central Bank of Brazil has shocked WhatsApp as the firm has been in touch with the authority on a daily basis. A month before its launch, WhatsApp had begun a small test of the service in the region. “Our goal is to provide digital payments to all WhatsApp users in Brazil using an open model and we will continue to work with local partners and the Central Bank to make this possible,” said WhatsApp in a statement to Bloomberg. It added that it intends to support the instant payment system of the central bank, which is due to start in November.
The central bank in Brazil asked that Mastercard and Visa stop the use of the app to allow payments and transfers of money and warned against fines for non-compliance.