WhatsApp Launches Fiat Payments in Brazil
By Marko Vidrih on The Capital
WhatsApp launched the first electronic payments on its platform, and Brazil was the first country in which they began to operate.
Banco do Brasil, Nubank and Sicredi Visa or Mastercard debit or credit card users will now be able to attach instant payments to their messages.
So far, there will be some cash limit for such payments due to AML and CFT problems. In addition, WhatsApp users in Brazil cannot make more than 20 transactions per day.
WhatsApp has over 120 million users in Brazil, which corresponds to approximately 57% of the country’s total population.
Facebook CEO Mark Zuckerberg said on his personal page that WhatsApp payments will expand in the near future.
Payments are made through the fiat payment system Facebook Pay, which was developed in 2019 for applications such as Messenger, Instagram and WhatsApp.
Facebook Pay is “based on existing financial infrastructure and partnerships” and is not connected to the Libra wallet Novi (formerly Calibra).
WhatsApp will use different fiat payment systems. For example, in India, Facebook Pay will be able to work through the UPI system, presumably due to pressure from regulators.
However, in the future, WhatsApp will also support Libra cryptocurrency. Unlike WhatsApp fiat payments, in Brazil and India Libra is positioned as a global solution for people for whom banking services are not available.
According to the May announcement of Novi, after launch, this digital wallet will be integrated into WhatsApp and will be able to support payments based on internal stablecoins such as LibraUSD, LibraEUR, Libra GBP, as well as the multi-currency LBR coin.
WhatsApp Launches Fiat Payments in Brazil, Ahead of Libra Stablecoin was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.