The Success Story of WhatsApp Payments in Brazil
Hey FinTech Fanatic!
Claro receives over 500,000 postpaid customer bill payments via Pix each month through WhatsApp Pay, a native payment feature in WhatsApp officially launched in early June for large companies.
Claro was among the first to adopt this feature, announced on the day WhatsApp Pay was launched in Brazil.
"It's better than we expected. It has generated a lot of efficiency and reduced settlement costs. Customers are also paying more promptly," said Albervan Luz, Claro's Director of Technology and Transformation, in an interview with Mobile Time.
Customer satisfaction among Claro users who paid their bills with Pix via WhatsApp is high, with 80% reporting a positive experience.
History and Business Model of WhatsApp Pay in Brazil
Meta gradually introduced native payment functionality in WhatsApp in Brazil. The service was first announced in June 2020 for credit card purchases but was immediately prohibited by the Central Bank of Brazil due to a lack of authorization from Mastercard and Visa, the partners in the project.
After nine months of adjustments, the Central Bank allowed the service in March 2021, initially only for transfers between individuals using registered debit cards within WhatsApp.
In April 2023, the app started allowing users to make payments with credit cards, but this was limited to small and medium-sized businesses.
Large companies were only permitted to receive credit card payments in June 2024, coinciding with the addition of Pix payments.
Thus, it took four years from the first attempt blocked by the Central Bank in June 2020 for the product to be fully available to the Brazilian public.
It's worth noting that WhatsApp does not charge for the use of WhatsApp Pay. Its business model remains focused on charging for conversations between brands and consumers, with the price depending on who initiated the communication and its purpose.
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