O central bank announced on Tuesday (23) that the WhatsApp Payments should be suspended throughout Brazil: the institution intends to “assess any risks” and fears that, without prior analysis, the novelty could cause “irreparable damage” to competition and privacy. The service, associated with the Facebook Pay wallet, started to be released last week to customers of Nubank, Sicredi and Banco do Brasil.
THE Bacen order it is for Visa and Mastercard: the flags must immediately suspend all activities related to WhatsApp Payments; it was initially released to 1.5 million users. If this is not done, the two companies will be subject to a fine and an administrative proceeding.
It is worth noting that the service was temporarily suspended in Brazil; he was not banned. Bacen plans to “assess any risks to the proper functioning of the Brazilian Payment System (SPB) and verify compliance with the principles and rules provided for in Law 12.865, of 2013”. This law defines the Brazilian Payment System and establishes the functions of the Central Bank.
WhatsApp Payments “could cause irreparable damage”
Without prior analysis, WhatsApp Payments “could cause irreparable damage to the SPB, notably in terms of competition, efficiency and data privacy,” says the institution.
Bacen justifies the decision by saying that it wants to “preserve an adequate competitive environment, which ensures the functioning of an interoperable, fast, secure, transparent, open and cheap payment system”.
Last week, Bacen said it saw the potential to incorporate the WhatsApp feature into PIX instant payments. However, there was a fear of “any initiative that may generate market fragmentation and concentration on specific agents”.
WhatsApp Payments and Facebook Pay were launched with support for debit and credit cards from Nubank, Sicredi, Woop and Banco do Brasil. Payments are processed by Cielo, which charges 3.99% on the value of transactions made by companies on WhatsApp Business; for individuals, transfers are free.
Rumors say that Bradesco, Santander and Itaú Unibanco tested WhatsApp Payments, but left the project before launch. There were plans to include support for Banco Inter, C6 and Neon cards soon, in addition to the Elo banner.