Brazilians Can Now Pay Small Businesses on WhatsApp!

Mobile payment is highly anticipated but have you ever imagined paying a business directly via an online chat? The most exciting news is that WhatsApp launched this feature in Brazil and started operating on 11/04!

 

“Starting today people across Brazil will be able to pay their local small business right within a WhatsApp chat. This seamless and secure checkout experience will be a game-changer for people and small businesses looking to buy and sell on WhatsApp without having to go to a website, open another app or pay in person.” the company said in the announcement.

 

Image source: WhatsApp

 

WhatsApp is the most popular app in Brazil with more than 147 million users in the region in 2022. In fact, research shows that up to 93% of the Brazilian online population is active on the platform, making it a key connection tool and, in many ways, an essential utility.

 

The move of WhatsApp Payments is part of WhatsApp's effort to expand its services beyond messaging and into e-commerce and payments, which will help facilitate buying and selling on Whatsapp. For e-commerce small businesses like dropshipping, it is essential to know the latest feature of WhatsApp and make the most of this tool to increase sales! So how does WhatsApp Payments work? And how will it impact dropshipping?

 

How Does WhatsApp Payment Work?

 

The integration of shopping and payments into the WhatsApp platform has been a long-term exploration for the company, with initial trials of the feature taking place in India in 2018. The launch of WhatsApp Payments in Brazil in 2020 marked the first full-scale rollout of the feature globally, with plans to expand to other markets in the future.

 

As of now, Brazilian users can already search for businesses in WhatsApp and view their products within DM chats through the app's Catalogs feature. With the addition of WhatsApp Payments, users can now also make purchases and pay businesses directly through private chat, offering a complete end-to-end shopping experience within the app.  

 

Image source: www.messengerpeople.com

 

WhatsApp said users can pay for products or services with Mastercard and Visa debit, credit, and pre-paid cards issued by the participating banks. Small businesses using the WhatsApp Business app can link their accounts with supported payment partners like Cielo, Mercado Pago, or Rede and create orders within the app to accept customer payments securely.

 

Any business can accept payments through WhatsApp, but Meta believes the greatest potential lies with small and medium-sized businesses, for example, who already use the app to sell online without having to create a website.

 

The service is free for users, and customers can already register cards. For businesses, the rollout will be gradual over the next few months, and registration will include a connection to one of the supported payment partners. You must have WhatsApp updated to the latest version to use the feature.

 

Of course, WhatsApp has also taken measures to ensure the security of its payment feature,   with card numbers encrypted and securely stored, and users are required to create a Payment PIN for each transaction.

 

How Will WhatsApp Payments Impact Dropshipping?

 

As more and more people turn to messaging apps to interact, in-chat payments are likely to be the future of online shopping, and the new WhatsApp Payments for SMBs is a significant development in this space.

 

JioMart, the online commerce play of Reliance Retail, and Meta launched a grocery shopping experience on WhatsApp in India in August 2020. Users were allowed to browse the JioMart Catalog, add products to their cart, and make purchases without leaving the messaging app.

 

Gaurav Jain, director of strategy and business development at Reliance Retail, said that JioMart saw a 37% increase in its active customer base month-on-month as of December 31, 2020, and a 9x growth in orders via WhatsApp since its launch. Additionally, Reliance Retail's digital and new commerce businesses continued to perform strongly, with a 30% year-on-year increase in daily orders. This highlights the potential for WhatsApp as a platform for e-commerce and digital commerce businesses in India and beyond.

 

Image source: WhatsApp

 

In the future, WhatsApp Payments could have the potential to impact dropshipping as it is an additional payment option for dropshippers, which will make it easier to receive payments from customers, particularly in Brazil where WhatsApp Payments is currently available.

 

The end-to-end shopping experience offered by WhatsApp Payments could lead to a more convenient and seamless experience for customers. With the addition of offering personalized service and quick response times through WhatsApp chat, you will be able to see increases in customer satisfaction and loyalty.

 

Now selected businesses will be able to use this feature initially before expanding availability later this year. This will give you time to adapt to the new feature and ensure that you are able to provide a seamless and secure payment experience to your customers.