In Brazil, WhatsApp is introducing the ability for users to pay businesses directly through chat. This means that people in the country will be able to have end-to-end shopping experiences within the app, from discovery to payment. This move allows WhatsApp to finally enter the Brazilian merchant payment market.
In a post, Mark Zuckerberg announced that the company is rolling out the ability for users to “pay local businesses right in a WhatsApp chat.”
Users in Brazil could previously conduct peer-to-peer transactions using WhatsApp Pay. However, due to regulatory constraints, Meta was unable to implement this ability to make purchases through merchants. Shops could generate a payment link and include it in a WhatsApp message using a third-party payment service, but this was not a seamless experience for either the merchant or the shopper.
There is currently no data on how many small businesses use WhatsApp. In 2020, the company announced that more than 5 million businesses in Brazil use WhatsApp.
According to WhatsApp, users can pay with Mastercard and Visa debit, credit, and pre-paid cards issued by “numerous” participating banks. Businesses can accept these payments by connecting their accounts to a service provider such as Cielo, Mercado Pago, or Rede. In Brazil, these companies had already established the technical infrastructure for peer-to-peer payment via WhatsApp.