How Does WhatsApp Make Money For Meta Facebook
More than 2 billion individuals use WhatsApp, a free messaging app, worldwide. How does WhatsApp make money, given that it’s free for users, is a legitimate concern? WhatsApp for Business and WhatsApp Pay are two ways that the Facebook subsidiary generates revenue.
The basics of WhatsApp design was achieved by Brian Acton and Jan Koum who launched WhatsApp in 2009. It is a free secured messaging service that enables users to communicate domestically and internationally via a secured network. Its current headquarters are in Menlo Park, California, and its parent company is Facebook (FB)/Meta Platforms, Inc.
Following Instagram and Facebook Messenger as the company’s two biggest subsidiaries, WhatsApp was bought by Facebook in 2014. WhatsApp doesn’t conduct its own business.
Investors would purchase shares of Facebook (Meta Platforms, Inc.), a subsidiary of Facebook, in order to benefit from the expansion of the parent firm, which includes the subsidiary as part of that expansion.
WhatsApp is a popular messaging app. Users can exchange photographs, documents, and voice and video chats while also sharing their location and sending text and voice messages. In essence, WhatsApp offers everything a user may possibly need to interact with someone else.
Users enjoy the platform’s free, ad-free, end-to-end encryption, which the business claims prevents it from reading or capturing conversations.
WhatsApp’s main feature is an effective personal messaging service. Its method of making money differs slightly from that of many competitors in the market. When WhatsApp was launched, it was a “freemium” service that allowed users to send messages for free for the first year before having to pay $0.99 per year to continue using it. They have abandoned this business strategy and refrained from using in-app advertising. Instead, they profit from WhatsApp Pay and WhatsApp for Business.
There are numerous rivals in the market, and each of them uses a distinct business plan to generate profits. The biggest rivals include LINE, Kakao, Kik, and Skype.
Following differences with Facebook about how the service would be marketed, Acton and Koum both quit WhatsApp.
Although consumers can use the service for free, companies can pay up for WhatsApp for Business to use the platform for sales and support. Major companies including Netflix, Uber, and Wish use the WhatsApp Business API. Initially, it urged companies to use the platform and respond promptly. Businesses will be charged by WhatsApp for delayed responses. As a result, while the company could reply without charge within 24 hours, replies received after that would incur a price.
In essence, a company’s rate decreases the more messages it delivers.
Similar to PayPal, WhatsApp Pay is a payment function. Peer-to-peer transactions are currently free in Brazil and India. Users are able to send money for free to friends and family. Companies and Businesses will have to pay 3.99% of each transaction.
This app links to a linked bank account where the money is deducted from or placed, just like other money transfer services. Only some devices in India and Brazil can currently access this service.
In the near future, WhatsApp might broaden WhatsApp Pay.
Although you can’t invest directly in WhatsApp, you can learn how the market leader in messaging services generates revenue for its parent company, Facebook. As it fights to keep its market share in secure messenger services, WhatsApp is growing as a revenue generator.
WhatsApp Pay has yet to be introduced in Nigeria by Facebook/WhatsApp. When it happens, it is anticipated that a flood of discussions regarding the impact on the Nigerian market. Similar to Brazil and India, a choice would need to be taken on whether or not to permit the payment service in Nigeria.
