WhatsApp said on Thursday that Brazil’s central bank intends to find a way to restore the country’s payment service.
The institution works with Visa Inc (VN) and Mastercard Inc (MA.N).
central bank has made it clear that they support platforms like WhatsApp, which are innovations in digital payments, ” said Will Cathcart, head of WhatsApp.
On Tuesday, the Central Bank of Brazil and the antitrust supervisor suspended WhatsApp’s newly opened payment services because they saw potential damage in terms of competition, efficiency and data integrity. Regulators have blocked WhatsApp’s partnerships with Visa, Mastercard and Cielo.
As Cielo is the only card issuer in the deal with WhatsApp, the Brazilian regulator ‘Cade is investigating whether the terms of the partnership are within the law.
Cade estimates that WhatsApp could increase Cielo card transactions by 10% in a conservative scenario. Cielo is already the largest payment processor in the country with a 41% market share.
However, Whatsapp supported in its statement the plans to open the service to more players in the future and to provide payments through the payment platform of the central bank PIX.
Brazil is the first country in which WhatsApp announced a national payment service. It has over 120 million users, their second largest market being in India.