The Central Bank of Brazil has suspended the recently launched mobile payments in the country in order to analyze the situation with a view to “preserving an appropriate competitive environment, which guarantees the operation of a payment system that is interchangeable, fast, secure, transparent, open and cheap”.

It has been through a request to Mastercard and Visa as in Central Bank of Brazil has ceased WhatsApp’s mobile payment activity and all money transfers through the messaging service.

This is a major setback for WhatsApp’s mobile payment service, which has not taken off after almost a month of testing in Brazil and several other markets such as India and Mexico. The platform’s payment service is one of the most important milestones for the long-term development of Facebook’s messaging service in order to expand business opportunities through the application.

Thus, the idea behind the suspension of WhatsApp’s mobile payments by the Brazilian Central Bank is based on an evaluation of possible risks within the country’s payment system, in order for the regulator to analyze whether the Facebook tool complies with the necessary standards for use in the country and does not put users at risk.

It is now time to wait and see what Facebook’s movement is in the face of the suspension, and above all, what situation remains for some of its most relevant partners, such as Visa and Mastercard, for the development and implementation of mobile payments in South America’s largest market.

The suspension may also have consequences for the development and implementation of this WhatsApp mobile payment function in other countries, as the company has been quite prudent in its implementation, which is being especially slow in reaching larger economies with high penetration of mobile payments among users.


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