Brazil’s central bank has approved WhatsApp Pay, which uses Visa and Mastercard accounts.
The approval is part of a plan to increase competition in the financial system through technology. In Brazil’s banking sector, the five biggest players account for almost 80% of lending and own brokerages and insurance companies.
Central bank president Roberto Campos Neto has repeatedly said that data processing is becoming more important than financial services, and that big technology companies will probably foster enough competition to reduce concentration.
Even so, the approval of WhatsApp Pay hit some roadblocks. The company announced the service in August, but the central bank quickly suspended it, saying that any service with potentially 120mn clients from the start needed thorough evaluation.
At the same time, the institution was releasing its own instant payment service, PIX, and concerns emerged that the services could clash.
The approval enables instant direct or pre-paid transactions among WhatsApp users who register Visa or Mastercard accounts.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC to Approve Exxon’s $64 Billion Deal with Pioneer Resources, Excludes
May 1, 2024 by
CPI
UK Competition Watchdog Raises Alarm Over Nvidia’s ARM Takeover
May 1, 2024 by
CPI
Sen. Klobuchar Urges Regulators to Probe Collusion in Health Care Pricing
May 1, 2024 by
CPI
Multiple States Join Tennessee’s Antitrust Lawsuit Against NCAA Over NIL Rules
May 1, 2024 by
CPI
NY AG Joins Suit Challenging NCAA’s Restrictions on Student Athlete NIL Rights
May 1, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI