WhatsApp Payment Service Stopped in Brazil
WhatsApp’s highly coveted payments service has hit a major roadblock in Brazil. Watch our latest video to learn more.
Ten days back, WhatsApp launched its much-coveted payments service in Brazil. Through this payment, service money can be sent and received on chat. Brazil is the second biggest market for WhatsApp after India. Similar to Facebook pay, WhatsApp's payments service allows users to send money to their contacts just like sending a photo or video on chat. This payment system was set up after tying up with several local banks in Brazil. It was launched for all WhatsApp users in Brazil on 15th June. It was a bit of a surprise for users in India as WhatsApp Pay has been in testing stage since 2018
However, in a few days after the launch, the WhatsApp payments service was suspended by the Central Bank of Brazil. Brazil’s Central Bank, has ordered WhatsApp, to shut down the project and immediately stop all transfers through Whatsapp. The bank has clarified that if WhatsApp does not stop, they would be fined. In a statement, the central bank said that Facebook started the service across the country without properly checking and taking approvals. This makes payment systems unsafe in Brazil. The central bank will soon open a case and that will decide if WhatsApp should have notified the bank in advance and whether the payment service should be allowed or not. Whatever the result of the case, this is a major setback for WhatsApp payments as their future is uncertain in Brazil. WhatsApp said, "Our goal is to provide digital payments to all WhatsApp users in Brazil and we will continue to work with local partners and the Central Bank to make this possible.”
