In a release, the Central Bank of Brazil ordered VISA and MasterCard suspend all services related to WhatsApp and WhatsApp Pay with immediate effect.
The experimental service called WhatsApp Pay, which would be available in Brazil, announced ago just over a week.
It is supposed to be a payment service integrated directly into the messaging application to allow users to transfer money and also connect credit or debit cards to the application.
The tests were mainly motivated by the progress China has made in this area: such as the famous WeChat that allows you to manage money through its application.
Why is Brazil blocking WhatsApp Pay?
Going into more detail, it is clear that the reason for blocking the project is to preserve an adequate competitive environment that guarantees the operation of an interoperable, fast, secure, transparent, open and profitable payment system.
This arrest will allow the Central Bank to assess the risks to the Brazilian payment system (SPB) and ensure that it complies with Law 12,865 of 2013.
A poor evaluation of these potential risks could cause damage to competitors and a lack of confidentiality of the data. Therefore, it is observed that those who do not comply with the decision will incur a 500 thousand BRL fine (85,000 euros, $ 97,000).
The main concern of the Central Bank of Brazil is that WhatsApp collects data from users, especially those related to expenses and transfers, which allows learning more about the habits of users, what products or services they buy, how their savings are used. , etc.
Let's not forget that WhatsApp has a really impressive user base: only in Brazil, there are 120 million users than They use the application every day, so having access to the data of these people could put WhatsApp in a very advantageous position.
Towards a cashless society
The theme of digital payments it is certainly on the agenda because we are moving more and more in the direction of a “cashless” society, that is, without the use of cash, but all managed through applications and debit and credit cards.
In this scenario, blockchain and cryptocurrencies have already shown that they work and offer a greater guarantee in terms of privacy.
PayPal itself could soon open the doors to cryptocurrencies and integrate them into your own application.
In any case, the WhatsApp Pay service in Brazil is still suspended for the moment, and WhatsApp's senior management is already working to provide support to the Central Bank and dispel any doubts or concerns about the use of this system.