WhatsApp payments suspended in Brazil by Central Bank
Brazil’s Central Bank has suspended Facebook’s WhatsApp payments feature in the country, just over a week after the messaging service announced its launch, Bloomberg reports. In a statement, the central bank said that it had taken the decision to ensure competition in the payment system market. Bloomberg notes that the bank will use the suspension to evaluate potential risks to the country’s payment infrastructure, and to work out whether WhatsApp is compliant with regulation.
The suspension in WhatsApp’s second biggest market is the latest setback for Facebook’s payment ambitions. Despite launching in beta back in 2018 in India (WhatsApp’s largest market), TechCrunch reports that parent company Facebook has struggled to gain regulatory approval for the service, preventing a wider roll out. Facebook missed its target for the service to be available nationwide by the end of last year. The WhatsApp payment service is also been tested in Mexico
WhatsApp had hoped that its payments system could be used by people to pay businesses as well as transfer money to individuals. The service would be free for individuals but would charge businesses a 3.99 percent processing fee. In countries like India and Brazil, WhatsApp often serves as the main online presence for many small businesses. Over 5 million merchants around the world use the business version of the app, according to Bloomberg.
Bloomberg reports that WhatsApp was surprised by the Brazillian Central Bank’s decision, since the company had been in regular contact with the authority. WhatsApp had started a small test of the service in the country around a month prior to its launch. “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,” WhatsApp said in a statement given to Bloomberg. It added that it plans to support the Central Bank’s instant-payment system, which is scheduled to launch in November.
Brazil’s Central Bank requested that Mastercard and Visa stop enabling payment and money transfers through the app, and warned that they could face fines for non compliance.
Brazil’s Central Bank has suspended Facebook’s WhatsApp payments feature in the country, just over a week after the messaging service announced its launch, Bloomberg reports. In a statement, the central bank said that it had taken the decision to ensure competition in the payment system market. Bloomberg notes that the…
Recent Posts
- New Nintendo Switch 2 rumors suggest that the console’s battery life will be ‘clocked crazy low’ in handheld mode
- LastPass officially splits from former parent GoTo
- TikTok and Universal Music Group end feud with new agreement
- Amazfit’s new low-cost wearable packs in a big display and 26 days of battery life
- As Questions Swirl Around Tesla’s Superchargers, the Race Is On to Fill the Power Gap
Archives
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- December 2011