WhatsApp Pay, the WhatsApp payments service launched by Facebook Inc, was launched a week ago in Brazil. However, this tool has only lasted 7 days after its suspension was known by the highest monetary authority of the country.
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 which had VISA, MasterCard and Facebook as allies.
The reasons that forced WhatsApp to cancel its payment system in Brazil
The Central Bank of Brazil has stated that the suspension is due to the fact that WhatsApp Pay will be altering the appropriate competitive environment in the area of mobile paymentsTherefore, they cannot guarantee the operation of a payment system that is interchangeable, fast, secure, 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 it was available on 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 about 1,000 taxpayers in different industries.
In the article made on the presentation of this service in the nation, we stated that it was compatible with the credit and debit cards of Banco do Brasil, Nubank and Sicredi through the Visa and Mastercard networks, hence the union between the two major transaction processors with Facebook. In essence, the app did not charge any fee to users, although they did have a charge of 3.99% of sales to companies.
Although it is a news in development in this month of June, the truth is that WhatsApp Pay has been immersed in a sea of regulatory difficulties, since for 2 years they have been awaiting approval in India.
According to the guys at Tech Crunch, the order must be followed with immediate effect, as failure to do so could lead to administrative penalties and fines for companies. We will see what happens as the days go by.