WhatsApp chooses Brazil to launch payment service

WhatsApp chooses Brazil to launch payment service Cybersecurity

Facebook has chosen Brazil for the global launch of its digital payment offer. The functionality is gradually being introduced on WhatsApp, in what is one of the biggest markets for Facebook.

Thanks to the “Facebook Pay” payment service, Brazilian users and small businesses can send or receive money up to 20 times a day. Transactions will only take place in Brazil and will be capped at 1,000 BRL (180 €) per day and 5,000 BRL (900 €) per month.

Individuals can open an account for transactions via the messaging application, providing information such as their name and social security number, which will be linked to a Visa or Mastercard debit or credit card from local Sicredi banks , Banco do Brasil or Nubank. A six-digit PIN code or fingerprint will be required to complete the transactions.

Brazil is the second largest market for WhatsApp after India

Other companies will be able to join the platform to allow their customers to make transactions via WhatsApp in the future. Transactions are mediated by the Cielo payment processor.

Small and medium businesses must create a Cielo account using the WhatsApp Business app, which was introduced in January 2018 in Brazil, to receive payments from customers. If individuals can use the feature for free, businesses will pay a 3.99% fee per transaction and will be able to issue refunds and obtain technical assistance.

Brazil is the second largest market for WhatsApp after India, with 120 million monthly users. In January, Facebook CEO Mark Zuckerberg confirmed that the launch of WhatsApp Payments is planned for 2020, starting with countries where the messaging tool is very present, such as Brazil.

“In terms of payment, we focus on different places with different products. For Instagram, and even Facebook, these are much more developed countries; for WhatsApp, these are the countries with the most users, “said Mark Zuckerberg at the time. “So it’s countries like India and Mexico, Brazil and Indonesia that make up a large part of the community on WhatsApp. “

Appetite for digital payment services

According to a study carried out by Kantar on behalf of Mastercard in May 2020 with Brazilians on the changes relating to payment habits, 75% of respondents would like to be able to pay in real time, regardless of the financial service provider they use , while 53% would like to be able to pay via messaging applications or social media platforms.

Ease and convenience were mentioned in the study as the main perceived benefits of digital payments. According to the study, the data suggests that Brazil is “fertile ground for the evolution of real-time payments”.

Covid-19 epidemic has led to changes in payment behavior for goods and services, research adds: 56% of Brazilians surveyed said they have changed their payment behavior due to the pandemic, and about 75% reported an increase in the use of digital payments due to recommendations for social distancing.

Safety is not the priority

Brazilians also show “a huge appetite” for services that make their lives easier, the study found. More than 70% of consumers surveyed would like to use their smartphone to pay for public transport, while 56% would find it useful to share the cost of meals with others at the time of the event.

This appetite for new things does not mean that there is a huge security concern, since only 15% of respondents said they would not try a new payment method because of these concerns.

Regarding payment authentication methods, fingerprint recognition was cited as the fastest and most secure method by 89% of respondents, followed by retina recognition (80%), recognition facial (69%), digital password (65%), subcutaneous microchip (53%) and voice identification (40%).

Source: ZDNet.com

Source: www.zdnet.fr

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