WhatsApp Pay, the WhatsApp payment service launched by Facebook Inc, was released a week ago in Brazil, however, this tool only lasted 7 days after it was known to be suspended by the country’s highest monetary authority.
The order has been issued by the Central Bank of Brazil, who through a statement have expressed the main reasons for prohibiting this payment alternative that had VISA, MasterCard and Facebook as allies.
About the reasons
The Central Bank of Brazil has declared that the suspension is due to the fact that WhatsApp Pay would be altering the appropriate competitive environment in the area of mobile payments therefore they could not guarantee the operation of a system of payment that is interchangeable, fast, safe, transparent, open and cheap.
They also allege that they had not been able to have the opportunity to analyze this payment system before its launch, which is why the decision was made days after being available in the market.
On the other hand, when the monetary entity emphasizes the issue of competitiveness, it can clearly refer to the PIX project, the central bank’s own payment service, a tool that already has some 1,000 taxpayers in different industries.
In the article made about the presentation of this service in the nation, we express that it was compatible with the credit and debit cards of Banco do Brasil, Nubank and Sicredi through the networks of Visa and Mastercard, therefore the union between the two great transaction processors with Facebook. In essence, the app did not charge users any fees, although they did charge 3.99% of sales to companies.
Although this is a news item in development this June, the truth is that WhatsApp Pay has been immersed in a sea of regulatory difficulties, since for 2 years they have been waiting for its approval in India .
According to the guys at Tech Crunch, the order must be followed with immediate effect, as failure to do so could result in administrative penalties and fines for companies. We will see what happens with the passing of days.