Mastercard has partnered with Facebook to offer Brazilians a way to send and receive money on the social network’s WhatsApp.
Cardholders who make bank transactions with two Brazilian banks, Nubank and Sicredi, will be the first to use the tool on WhatsApp, which allows users to send text and voice messages and money. Soon, more banking partners are expected to join the program, Mastercard said.
By using Mastercard Send, WhatsApp users can use their phones to transfer money instantly. While social distance measures encourage consumers to seek other ways of paying without touch, WhatsApp appears as a new option for making transfers, in addition to making and receiving payments in a contactless way.
“Over a third of young Brazilians make payments through their mobile phone regularly today, and we know immediacy of payment transfers and instant confirmations are the most important factors for this segment of consumers,” said Shari Krikorian, Mastercard senior vice president, in a statement. “Our partnership ... is just another example of how Mastercard is providing innovative new solutions for customers and consumers all around the world, enabling them to send and receive money, when, where and how they want.”
Linking a credit or debit card to the app is secure, Mastercard said, thanks to the use of its technology to protect the cardholder’s information by replacing the original 16-digit card number with a virtual number associated with the individual account and won’t work elsewhere. After creating it, users enter their PIN to complete a transaction.
Globally, domestic P2P transfers are expected to reach more than $2 trillion by 2022. A recent study revealed 60 percent of Brazilians use WhatsApp to buy products, negotiate prices or schedule appointments.
“As a payment technology company, we work to bring new products to promote financial inclusion in a safe, practical and easy way for continuous transactions,” said Joao Pedro Paro Neto, president of Mastercard Brasil and Cone Sul in a statement. “This partnership with Facebook shows our ability to revolutionize the options for sending and receiving money in Brazil , keeping the needs of our customers at the forefront of our strategy and supporting small local companies.”
Mastercard’s announcement came on the same day Visa announced it is enabling linkups with its card on WhatsApp in Brazil.