FinTech: Brazil Clears Facebook’s WhatsApp For P2P Payments
However, Brazil’s Pix, a homegrown instant payments system, has a headstart on WhatsApp.
Banco Central Do Brasil (BCB), Brazil’s central bank, has given the green signal to WhatsApp, the messaging app owned by Facebook (NASDAQ: FB) to operate its payments service in Brazil. (Reuters)
The permission came nearly nine months after a regulatory fracas in which BCB ordered Visa Inc (NYSE: V) and Mastercard (NYSE: MA) to suspend payments transactions through the payments service then newly introduced by Facebook.
BCB also ordered WhatsApp to suspend its fledgling service until it could review its compliance with all the rules regarding “competition, efficiency and data privacy.”
During the time the service stood suspended, Brazil launched its own payments system known as Pix, which can be used to pay both individuals and businesses.
Further, there’s a catch to the BCB’s approval to WhatsApp: The messaging app can only process payments between its own users (P2P) and through Visa Inc (NYSE: V) and Mastercard (NYSE: MA) card networks. It also cannot yet process payments to merchants.
Moreover, WhatsApp will be regulated by the central bank. Notably, after the regulatory stumble in June, Facebook obtained formal approval as a payments initiator using Visa and Mastercard as processors. The latter also had to obtain clearance for the tie-up with Facebook.
It is not clear when Facebook will relaunch its WhatsApp payments service in Brazil, as it is still pursuing a license to process merchant payments.
However, a spokesperson said it’s “making the final preparations to have payments on WhatsApp available in Brazil as soon as possible.”
Related Story: Facebook’s WhatsApp Payments Service Hits Regulatory Wall in Brazil
Latest Alternative Investment News
FinTech: Adyen Launches ‘Payout Services’ For Faster Payouts To The Gig And SMB Economies
Adyen, a global financial technology platform, has launched Payout Services, allowing its customers to make instant payouts to their users or partners. By connecting directly to real-time payment rails, Adyen’s…
Digital Assets: Oracle Red Bull Racing Seeks To Digitize Engagement With Fans On The Sui Blockchain
Oracle Red Bull Racing has announced a multi-year partnership with software company Mysten Labs to collaborate on Sui, which will serve as the team’s Official Blockchain partner. Sui, a Layer…
Venture Capital: Bold, L’Oréal’s Venture Capital Fund, Buys A Stake In Exotic Cosmetic Ingredient Maker Debut
L’Oréal’s (EPA: OR) corporate venture capital fund, BOLD, has announced a minority investment in Debut, a US biotech company specializing in the discovery, formulation, and manufacture of novel ingredients and…
Artificial Intelligence: In Flight Simulation, An AI Drone Tries To Kill Its Own Handler
During a simulated test at a London summit, an AI-controlled drone turned against its human operator, raising significant ethical concerns. Air Force Colonel Tucker “Cinco” Hamilton shared the incident, which…