Categories: Digital Payments

Brazil Banking Head Calls For Probe Into WhatsApp Payments

WhatsApp will be allowed to operate its payments service in Brazil once the company formally seeks permission and shows it can operate in the country without putting customers’ data at risk or violating rules intended to preserve competition, the company’s chief central banker said Thursday, according to Reuters.

Roberto Campos Neto also said in a webcast reported via the Congresso Em Foco news site that the government never blocked the service, which Facebook shut down last week — just days after launching it — due to what reports at the time said was a mandate from banking regulators.

“The Central Bank never forbade WhastApp to operate,” Campos Neto said. This article is based on computerized translations of his remarks to English from Portguese. “This news is not true,” he continued. “What the Central Bank understood is that (WhatsApp payments can affect) the economy and that it needed to go through the same approval process as (competitors).”

Shortly after WhatsApp Pyments was frozen around June 21, Brazilian officials suggested a path forward was possible. Campos Neto’s latest remarks, initially reported by the newspaper Correio Braziliense, were more definitive than earlier statements.

“We have a super pro-competition agenda,” he is quoted saying. “As soon as it is proven that it is a competitive arrangement and that it has data protection in the form that we understand necessary, it will be approved.”

WhatsApp has more than 2 billion users worldwide, according to reports.

According to Reuters, WhatsApp has more than 120 million users in Brazil, second only to its subscriber-base in India.

WhatsApp owner Facebook’s troubles in Brazil come as the company is fighting a significant boycott of advertisers in the U.S. and other countries. Some companies pulling their advertising said they are doing so because of the social media platform’s failure to prevent its usage as a medium for spreading hateful messages.

Get our hottest stories delivered to your inbox.

Sign up for the Newsletter to get updates on top stories and viral hits.


New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

Recent Posts

Trump’s WeChat Ban Could Rock The US Consumer Landscape

President Donald Trump has issued two executive orders in two days banning two Chinese behemoths from operating in America –…

50 mins ago

US DOJ Charges 14 With $28M In PPP Fraud

The U.S. Department of Justice (DOJ) charged 14 people in two separate investigations into their alleged participation in schemes to defraud the…

4 hours ago

Digital IDs For Online Bowling, Voice Commerce, Apple’s Mobeewave Deal Top This Week’s News

Top News Apple Buys Mobeewave for $100M Apple has purchased Canadian company Mobeewave, which will allow it to create mobile…

5 hours ago

TikTok ‘Shocked’ By Trump’s Executive Order

In its first public statements about President Donald Trump’s executive order to ban TikTok, the Chinese company said it is…

5 hours ago

Microsoft, Facebook Express Frustration With Apple’s Gaming App Policies

Microsoft and Facebook are grumbling publicly about fellow tech giant Apple's policies restricting access to coveted slots in its App…

6 hours ago

Mercari’s Revenues Pop 48 Pct For FY2020, But Losses Also Grow

Mercari, the Japanese shopping platform that allows users to buy and sell almost anything, reported its net sales surged nearly…

6 hours ago