WhatsApp has obtained official approval from the Brazilian government to restart the service of payments, sending and receiving money between users in Brazil.
Facebook launched a money transfer service on WhatsApp in Brazil last year with the support of several financial institutions and companies such as MasterCard, but once it was launched, the government ordered a ban on the service due to its inconsistency with the laws stipulated in the Latin country. Now to restore the service, but with changes commensurate with the regulations there.
The service will be available in a peer-to-peer system, meaning that the user can send money to another directly only via Visa or Master cards.
The parties have not officially announced the date of launching the payments service in Brazil, but it is expected to start soon after obtaining approval.
This method is more organized in sending and receiving money, and the ability to monitor financial movements is easier because it is carried out through accredited financial institutions represented by Master Card and Visa. On the other hand, Facebook will reduce criticism of it in the future because it does not process any amounts, as the matter will be completely through the third party.
Brazil is the second largest market for WhatsApp around the world after the Indian market, which is one of the main reasons for choosing to launch the service.
It is noteworthy that Facebook previously launched the service of sending and receiving money in India, but on the Messenger application and not via WhatsApp, like Brazil.