The Brazilian central bank ordered Mastercard and Visa to suspend the processing of remittances ordered through the WhatsApp application.
According to official information published on Cointelegraph Brazil, the Central Bank of Brazil has taken action against WhatsApp Pay “to maintain an appropriate competitive environment” and to enable the central bank to assess the risk the company poses for the financial sector in the country.
Visa and Mastercard will be exposed to high fines and administrative sanctions if they do not suspend WhatsApp payments.
The Central Bank of Brazil will assess the risk
The Central Bank of Brazil has suspended the activities of WhatsApp Pay in the country, claiming that it did so to ensure the “operation of an interoperable, fast, secure, transparent, open and cheap payment system”. He added that thanks to this, the bank will have time to “assess all threats to the proper functioning of the Brazilian payment system and verify its compliance.”
WhatsApp launched its payment system in Brazil earlier this month, after two years of testing in various emerging markets. Brazil is the second largest market for the WhatsApp application, which is used by over 120 million users in this country.
WhatsApp plans integration with the PIX system
Despite taking immediate action against WhatsApp, the Brazilian central bank has also announced that the payment function will probably be integrated with PIX – the upcoming central bank digital payment system based on blockchain technology.
IN conversation with Bloomberg WhatsApp spokesman said the company supports the PIX project and is committed to working with the central bank to integrate:
“We support the PIX project, dealing with digital payments, and together with our partners, we commit to cooperate with the Central Bank to integrate our systems when PIX becomes available.”
WhatsApp is another company that introduces its own payment system. In Poland, recently, their mobile payment applications have started to create popular food supermarkets. Lidl Pay was the first such system introduced in Poland that allows customers to pay for purchases using the application. A similar solution is currently being tested by the Żabka chain of stores. The application is to be called Żappka Pay.