On Monday, Facebook’s WhatsApp messaging service launched a system across Brazil that will allow users to send money to individuals or local businesses within a chat, attaching payment as they would a photo or video. The Brazil launch will be the first nationwide rollout and will introduce the ability to directly pay a business. WhatsApp has over 120 million individual users in Brazil.
Matt Idema, chief operating officer of WhatsApp, said of Brazil.
Matt Idema, chief operating officer of WhatsApp, said that “WhatsApp is heavily used there, both by people and small businesses.”
He told Reuters in an interview that “We think we can help grow digital payments, help grow the digital economy with small businesses, and help support financial inclusion.”
Idema said that many of Brazil’s small businesses already use WhatsApp as a marketing tool to answer questions or send catalogs.
In April, Facebook Chief Executive Mark Zuckerberg announced that the company was expanding tools for businesses in WhatsApp.
Idema said that the rollout in Brazil was long-planned, but may help users who are shut in during the coronavirus pandemic.
He said that “We can’t have the kind of interactions with each other that we normally would, if you want to lend someone cash or if you want to buy something from a local business.”
The payment system will use Facebook Pay and be free to individual users while charging businesses a fee for receiving payments.
Originally, the system will accept payments from debit and credit cards from Banco do Brasil, Nubank, and Sicredi, and is working with Cielo to process the payments.
Idema said the company was planning to bring the payment system to several other countries, but he did not specify which ones.