Brazil central bank chief says WhatsApp payments service requires further review
Brazil’s central bank president said WhatsApp’s payment service requires a more thorough analysis.
Brazil’s central bank president said on Thursday that Facebook Inc messaging service WhatsApp would be allowed to launch its new payments service in the country once the social media platform proves that it can operate safely in terms of data protection in a competitive market.
“We are not saying that it is not competitive, we just want them to ask for authorization and to show us how it will work for us to make sure it is competitive,” Roberto Campos Neto said in a webcast organised by local newspaper Correio Braziliense.
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Last month, Brazil's central bank suspended a system allowing users of WhatsApp to send money via chats, citing potential damage in the areas of competition, efficiency and data privacy.
Campos Neto said that WhatsApp’s payment service requires a more thorough analysis.
“We have a pro-competition agenda. Once it is proven that it is a competitive arrangement and has data protection in the way we understand is needed, it will be approved,” Campos Neto added.
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WhatsApp has over 120 million users in Brazil, its second-largest market after India, where it has also struggled to roll out a payments system.
In India, the feature did not take off due to regulatory issues. The feature was tested on just 1 million users despite WhatsApp having 400 million users in India.