Brian Acton and Jan Koum launched WhatsApp back in 2009. It’s a freemium encrypted messaging platform that enables people on a secure network to communicate with one another both locally and internationally.
Facebook bought WhatsApp in 2014, earning it the firm’s third-largest division behind Instagram and Facebook Messenger. It is now housed in Menlo Park, California, and its holding company is Facebook (FB)/ Meta Platforms, Inc.
How Does WhatsApp Make Money?
WhatsApp’s offering is straightforward: a strong private messenger service. It generates revenue in a unique way than others in the industry. WhatsApp began as a free-to-use service, allowing subscribers to send chats for free for a year and subsequently subscribe for a yearly cost of $0.99.
Facebook-owned WhatsApp has now abandoned this economic strategy in favor of in-app marketing. They earn money alternatively via WhatsApp for Business and WhatsApp Pay.
WhatsApp for Business
Facebook had new WhatsApp plans. The firm released the WhatsApp Business app, which allows users to create a brand presence and establish a certified business on WhatsApp.
Registered firms may build a business portfolio with vital connections to their site or Facebook account, set auto-response, connect their telephone lines to WhatsApp, and incorporate the WhatsApp for Business API with any product line.
While individuals may access the product for free, companies can pay up for WhatsApp for Business to utilize the system for sales and customer service.
Big brands including Netflix, Uber, etc use the WhatsApp Business Interface. It first motivated firms to employ the service and respond quickly.
Businesses will be charged for late responses on WhatsApp. So, although the company might engage in response for free within 24 hours, any replies beyond that period would be levied a price.
The latest WhatsApp for Business API costs depends on a texting tier. Basically, the more texts a corporation publishes, the lower the rate is.
WhatsApp Pay
WhatsApp has implemented a payment function (P2P payments) within the app for Indian subscribers, which might strengthen its competitive dominance and make it a favored tool for transferring funds.
WhatsApp Pay is a payment mechanism that functions similarly to PayPal. Customers may transfer free cash to colleagues, relatives, and enterprises. The recipient entity is taxed 3.99% for each transfer.
The application, like many other money-transfer services, links to a connected bank account wherein money is withdrawn or transferred. This application is presently only accessible on select phones in India and Brazil.
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