According to Reuters, the payment option on Whatsapp is available for Brazil again. After around one year, this facebook-owned chat platform has relaunched the feature of Whatsapp pay in Brazil. It was found that Brazil was the launching country for Whatsapp payment option. This feature got rolled in India after a few months of launch in Brazil, but the central bank forced the service to stop this feature. The banking services gave Whatsapp the approval to facilitate Visa— or Mastercard-backed peer-to-peer payments this March just after looking at whether it is meeting all the rules of competition, efficiency, and data privacy or not.
As per a Reuters report, Whatsapp avoided being categorized as a financial services company by relying on Visa and Mastercard’s bank licenses. The payment processors were asked to suspend money transfer activities from WhatsApp though, and had to secure new permits. The parent company will have to create a new unit called Facebook Pagamentos do Brasil that will be regulated by the central bank.
Moving ahead, the Whatsapp payment feature is relaunched in Brazil but this doesn’t mean that everyone can access it. Only a limited number of people can access this at first, after that they will have to invite others for using this feature. Users can only send 5,000 Brazilian Real to each other free of charge. However, the single transaction limit in Brazil is around 1,000 Brazilian Real, and users can only process 20 transfers in a day and not more than this.
At present only peer-to-peer transfers are going to take place, but this feature was specially introduced to help small merchants. Local Businesses in Brazil and India use this chat application on a high scale and this is why the payment option was launched. Facebook is still talking with central banks about this feature and will launch the feature again by this year.