WhatsApp launches Fiat payments, using Facebook Pay

WhatsApp launches Fiat payments, using Facebook Pay

Business Technology
June 18, 2020 by admin
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Brazil is becoming the first country to experience nationwide fiat electronic payments on the WhatsApp platform. Instant in-app fiat payments for over 120 million users of WhatsApp in Brazil. Users in Brazil will be able to use the payments service on WhatsApp to make purchases from local businesses without leaving their chat, the Facebook-owned service said.
WhatsApp launches Fiat payments, using Facebook Pay

A statement released by WhatsApp on June 9th, pointed out users that have Visa and Mastercard debit or credit cards from Banco do Brasil, Nubank or Sicredi can now do payments via attaching instant payments to their messages. The unspecified pecuniary limit is considered due to Anti-Money Laundering and Combating the Financing of Terrorism concerns. Additionally, WhatsApp users in Brazil are allowed to do daily payments up to 20 times a day.

Statics mention that WhatsApp has over 120 million users in Brazil or about 57% of the country’s entire population. While the official press release does not mention any release of this new feature in any other regions other than Brazil, Facebook CEO Mark Zuckerberg said on his personal page that this will be available in many more countries soon.

Crypto still not Available

Facebook Pay is a payment system developed in 2019 for Facebook-affiliated apps such as Messenger, Instagram, and WhatsApp. This new WhatsApp feature will work on this basis. Facebook Company has mentioned before that their Facebook Pay “is built on existing financial infrastructure and partnerships” and there is no connection nor relation to the Novi (ex. Calibra) wallet that will run on the Libra network.

WhatsApp says in its blog post that the payments service — which currently is free for consumers to use (that is, no commission fee taken) but businesses pay a 3.99% processing fee to receive payments — will work by way of a six-digit PIN or fingerprint to complete transactions. WhatsApp might use different payment systems for fiat electronic payments in different countries. In India, where the messaging giant has reportedly been testing in-app payments for months, WhatsApp is aiming to use a locally developed solution called UPI, supposedly due to pressure from domestic regulators.

It is not clear whether Facebook will be open to working with other kinds of payment methods, or even other payment rails beyond Facebook Pay in other regions for launching the service, or what kinds of use cases it will follow for the service — although the trial in India, using UPI, implies that the approach will not be the same in every country.  Nevertheless, WhatsApp is still going to support and launch Libra Coins at some point in the future. Unlike nationwide WhatsApp fiat payments in countries such as Brazil and India, Facebook has been marketing this Facebook coin as a global solution for currencies needless of banks.

Press release from Novi mentioned that a Facebook-owned digital wallet will be integrated into WhatsApp once it is released it will be supporting payments in in-house Stablecoin such as LibraUSD, LibraEUR, and Libra GBP, as well as a multicurrency coin called LBR.

To sum upFacebook-owned messaging service announced that users in Brazil would be the first to be able to send and receive money by way of its messaging app, using Facebook Pay, the payments service WhatsApp owner Facebook launched last year.

Calibra: is a permission Blockchain digital currency proposed by the American social media company Facebook, Inc. The currency and network do not yet exist, and only a rudimentary experimental code has been released. The launch is planned to be in 2020.

References
https://cointelegraph.com/news/whatsapp-debuts-fiat-electronic…

https://www.reuters.com/article/us-whatsapp-brazil-payments…
https://en.wikipedia.org/wiki/Libra_(digital_currency)

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