{"id":5483,"date":"2020-06-15T14:20:51","date_gmt":"2020-06-15T14:20:51","guid":{"rendered":"https:\/\/newmoneyreview.com\/?p=5483"},"modified":"2020-06-24T10:53:07","modified_gmt":"2020-06-24T10:53:07","slug":"facebook-goes-brazilian-for-latest-payments-launch","status":"publish","type":"post","link":"https:\/\/newmoneyreview.com\/index.php\/2020\/06\/15\/facebook-goes-brazilian-for-latest-payments-launch\/","title":{"rendered":"Facebook launches digital payments in Brazil"},"content":{"rendered":"<p>There&#8217;s no sign of a let-up in tech mogul Mark Zuckerberg&#8217;s push into payments. Facebook announced today that its WhatsApp messenger service has started offering in-app digital payments for users in Brazil.<\/p>\n<p>The south American country, where WhatsApp <a href=\"https:\/\/techcrunch.com\/2020\/06\/15\/whatsapp-finally-launches-payments-starting-in-brazil\/\">has 120 million users,<\/a> is the social media app&#8217;s second largest market.<\/p>\n<p>\u201cPeople [in Brazil] will be able to send money securely or make a purchase from a local business without leaving their chat,\u201d <a href=\"https:\/\/blog.whatsapp.com\/bringing-payments-to-whatsapp-for-people-and-small-businesses-in-brazil\">WhatsApp said in a blog<\/a>.<\/p>\n<p>Facebook, which owns WhatsApp and two other messenger services, Instagram and Messenger, is taking a multi-pronged approach to expanding its payments business, which offers the firm a chance to move away from <a href=\"https:\/\/newmoneyreview.com\/index.php\/2018\/04\/18\/facebook-scandal-accelerates-demands-for-decentralised-digital-identity\/\">the ad-driven business model that has proved so controversial<\/a> in the past.<\/p>\n<p>In June last year the firm announced ambitious plans for <a href=\"https:\/\/beta.newmoneyreview.com\/index.php\/2019\/06\/18\/zuckerberg-launches-his-global-currency-project\/\">a new global digital currency called Libra<\/a>.<\/p>\n<p>However, in April this year, Facebook downgraded this goal, saying <a href=\"https:\/\/newmoneyreview.com\/index.php\/2020\/04\/16\/facebooks-libra-goes-for-single-currency-stablecoins\/\">it was henceforth focusing on a range of individual currency \u2018stablecoins<\/a>\u2019, rather than on developing a single global means of payment.<\/p>\n<p>In parallel with its plans for Libra, in November 2019 Facebook said it was launching a new service called Facebook Pay, initially available to the company\u2019s US-based users of Facebook Messenger.<\/p>\n<p>\u201cOver time, we plan to bring Facebook Pay to more people and places, including for use across Instagram and WhatsApp,\u201d Facebook\u2019s vice-president of marketplace and commerce, Deborah Liu, said at the time.<\/p>\n<p>It is Facebook Pay that will underlie the new WhatsApp payment service in Brazil, the firm says.<\/p>\n<p>Earlier in 2019 Facebook\u2019s CEO, Mark Zuckerberg, said <a href=\"https:\/\/www.nytimes.com\/2019\/01\/25\/technology\/facebook-instagram-whatsapp-messenger.html\">he planned to integrate Messenger, Instagram and WhatsApp<\/a>, which have an estimated 2.6bn users worldwide.<\/p>\n<p>Facebook says its new Brazilian service will run on the established Visa and Mastercard <a href=\"https:\/\/newmoneyreview.com\/index.php\/2020\/06\/02\/the-new-money-rails\/\">payment \u2018rails\u2019<\/a>, though the firm insists it is building an open model to welcome more partners in the future.<\/p>\n<blockquote><p>Indian regulators have prevented the trial being extended to all 400m users<\/p><\/blockquote>\n<p>The tech giant\u2019s switch to Brazil comes after it received a rebuff to its payment plans in India, WhatsApp\u2019s largest market. Facebook had been trialling a WhatsApp-based payments service in India since early in 2019.<\/p>\n<p>During the trial, around 1 million Indian users of WhatsApp were able to pay each other directly via the app, after having linked their Indian bank account to their WhatsApp account.<\/p>\n<p>This offered Facebook and WhatsApp a way to avoid the use of third-party services like Visa and Mastercard.<\/p>\n<p>Rather than using these credit card rails, payments between Indian WhatsApp users\u2019 bank accounts passed directly from bank account to bank account by means of India\u2019s Unified Payments Interface (UPI), <a href=\"https:\/\/newmoneyreview.com\/index.php\/2019\/12\/18\/how-india-leapfrogged-the-west-in-payments\/\">which offers a near-instantaneous settlement of transactions<\/a>.<\/p>\n<p>However, Indian regulators have so far prevented the trial being extended to all 400m Indian users of WhatsApp.<\/p>\n<p>In November 2019\u00a0<a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/whatsapp-cant-start-payments-business-rbi-tells-sc\/articleshow\/71963914.cms\">the Times of India reported<\/a>\u00a0that the Reserve Bank of India (RBI), the country\u2019s central bank, had decided not to allow the full-scale launch of a payments business in India by Facebook because of the firm\u2019s non-compliance with a requirement to store data locally.<\/p>\n<p>In Brazil, the new WhatsApp-based payments service will come at a cost to businesses, though not to individuals.<\/p>\n<p>While sending money or making a purchase on WhatsApp will be free for people, businesses will pay a processing fee to receive customer payments, the firm says. WhatsApp says this fee will be similar to what businesses may already pay when accepting a credit card transaction.<\/p>\n<p><em>Update, June 24: <a href=\"https:\/\/www.finextra.com\/newsarticle\/36083\/brazil-central-bank-ices-facebooks-whatsapp-payment-service?\">Brazil&#8217;s central bank suspended Facebook&#8217;s WhatsApp-based payments service a week after launch<\/a>, citing the need to \u201cpreserve an adequate competitive environment\u201d in the mobile payments space and to ensure \u201cfunctioning of a payment system that\u2019s interchangeable, fast, secure, transparent, open and cheap.&#8221;<\/em><\/p>\n<p><em><a href=\"http:\/\/eepurl.com\/du6eTr\">Sign up here<\/a> for our monthly newsletter<\/em><\/p>\n<p><em><a href=\"https:\/\/blubrry.com\/newmoneyreview\/\">Click here<\/a> for a full list of episodes of the New Money Review podcast: the future of money in 30 minutes<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There&#8217;s no sign of a let-up in tech mogul Mark Zuckerberg&#8217;s push into payments. Facebook announced today that its WhatsApp messenger service has started offering in-app digital payments for users [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":5482,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1014],"tags":[1775,1055,1594,1343,1388,1470],"class_list":{"0":"post-5483","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payment","8":"tag-brazil","9":"tag-facebook","10":"tag-india","11":"tag-payments","12":"tag-whatsapp","13":"tag-zuckerberg"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Facebook launches digital payments in Brazil - New Money Review<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/newmoneyreview.com\/index.php\/2020\/06\/15\/facebook-goes-brazilian-for-latest-payments-launch\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Facebook launches digital payments in Brazil - New Money Review\" \/>\n<meta property=\"og:description\" content=\"There&#8217;s no sign of a let-up in tech mogul Mark Zuckerberg&#8217;s push into payments. 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