CALIFORNIA: Famous messaging app ‘WhatsApp has announced to once again introduce its peer-to-peer money transfer feature after the Facebook-owned service earlier experienced a setback in Brazil.
The spokesperson for the company said the feature would be rolled out to other countries after initially being introduced in Brazil, adding Engadget it was “making the final preparations to have payments on WhatsApp available in Brazil as soon as possible”.
In a statement, “WhatsApp said the decision to endorse our payments maker license request was a welcome move.” “Now, more than ever, safe, secure, and convenient digital payments offer a vital path to deliver money speedily to people in require and assist businesses with their economic recovery,” the spokesperson added.
WhatsApp had launched its digital payments and funds transfer feature in Brazil in June 2020 wherein users could send money to their friends and relatives however the country’s central bank said it could damage the existing payments system in terms of competition, efficiency, and data privacy.
WhatsApp had unsuccessful to obtain the needed licenses as well, Brazil’s central bank claimed, following which the feature was pulled. Although, later the Facebook-owned app has received the green light for its in-app money transfers.
Successfully, while users can transfer money to friends and relatives using the networks of Visa Inc WhatsApp has not been permitted to let them make commercial payments. Both card networks also had to get new permits to operate with Facebook’s messaging app, which itself would be regulated by the central bank.
A fast-growing social media giant that also owns photo-sharing app Instagram, Facebook has been eyeing the use of its social media platforms to compete with banks and fintech in allowing fast electronic funds transfers.
WhatsApp had introduced its digital payments feature in India, allowing people to send money or share costs “without having to exchange cash in person or going to a local bank” and bringing it ever closer to a ‘super app’ status through its continuous efforts.
The first time WhatsApp had played with the idea of a digital payments service was in 2018 when it tested the feature with limited users. Moreover, Apple Inc devices also have a similar feature but it’s only limited to iOS and does not work on Android.
