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Thursday, June 25, 2020
UPDATimes - The Central Bank of Brazil has stopped operating WhatsApp Pay, which is only one week old. This service allows users to transfer funds as easily as sending photos.
In its official announcement, the Brazilian Central Bank said the launch of this digital payment service without initial analysis by the central bank could damage the Brazilian payment system in terms of competition, efficiency and data privacy.
If Visa and Mastercard do not meet these rules, the central bank threatens to impose administrative sanctions, the Brazilian central bank said, as quoted by Reuters.
To present payment services, WhatsApp works closely with financial institutions namely Banco do Brasil, Nubank and Sicredi. This transaction will be processed by Cielo, the payment gateway company.
How to activate this service by connecting a Visa or Mastercard credit card or credit card to WhatsApp. This service is free for individual users while businesses are charged 3.99%.
A WhatsApp spokesman said it would continue to work with 'local partners' and central banks to bring digital payments to users in Brazil using a business model that was open to all participants, central bank worries about market concentration.
Facebook as the parent company of WhatsApp has recently officially released a digital payment system in its application called WhatsApp Pay. It is known that there are currently several countries that can use the service, one of which is Brazil.
But just one week after the service was launched, the authority of the Brazilian central bank has reportedly decided to close the service because it would disrupt competition in the country's payment system market.
Video WhatsApp in Brazilian
He said that they would temporarily close the service and evaluate whether the WhatsApp Pay service was in compliance with regulations or not.
In response, WhatsApp also said that they would continue to work with the Brazilian central bank and other local partners so that the service can be present without problems.
"We support the Central Bank PIX project for digital payments and together with our partners, we are committed to working with the Central Bank to integrate our system," said a WhatsApp spokesman.
As information, PIX itself is one of the payment systems of the Brazilian central bank which now has nearly 1,000 partners. The service will be launched in November 2020.
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