Social media giant Facebook announced that it has introduced digital payments option for WhatsApp users in Brazil.
With the help of the payments option, WhatsApp users will be able to send money securely or make purchases from local businesses without leaving their chat.
The payments service is claimed to be particularly beneficial for small and micro businesses that are the heart of the country’s communities.
While users send queries using WhatsApp, they can not only view a store’s catalogue, but can also send payments for the products as well.
Enabled by Facebook Pay and processed by Cielo, the service is expected to bring several businesses into the digital economy, opening up new avenues of growth in Brazil.
Facebook will not charge users any fees for the payments service
Facebook says that while it will not charge users any fees for the payments service, it will charge processing fee from businesses.
For the payment service, a user needs to add a supported debit or debit-enabled combo card just once to send and receive money. The service is protected by Facebook Pay PIN or device biometrics every time a user sends money.
Facebook further claims that the card information is also encrypted in accordance with Payment Card Industry (PCI) requirements and is protected by multiple layers of security.
In a statement, Facebook said: “We have built payments with security in mind and a special six digit PIN or fingerprint will be required to prevent unauthorized transactions.
“To start, we will support debit or credit cards from Banco do Brasil, Nubank, and Sicredi on the Visa and Mastercard networks – and we are working with Cielo, the leading payments processor in Brazil. We have built an open model to welcome more partners in the future.”
Payments on WhatsApp are supported by Facebook Pay and in the future, the social media giant aims to make it possible for people and businesses to use the same card information across Facebook’s family of apps.
