Tech roundup: WhatsApp v. PIX is not a thing

Welcome to our Tech Roundup, where we bring you Brazil’s biggest stories on technology and innovation. This week: Meta finally sees its WhatsApp payment service authorized in Brazil.

WhatsApp v. PIX is not a thing

This week, the Central Bank authorized purchases to be made via WhatsApp Messenger with Visa and Mastercard credit, debit, and prepaid cards.

State of play. The green light comes almost three years after Meta (which back then was called Facebook Inc) announced the arrival of WhatsApp Pay in Brazil. In June 2020, the country was supposed to be the company’s first market to roll out the new feature.

• But the Central Bank instantly banned the service, claiming that all agents involved in the payment arrangement lacked specific authorizations, and that the idea went against a fundamental principle of the monetary authority’s innovation agenda: interoperability.
• At the time of the announcement, only merchant customers of Cielo, Brazil’s largest acquirer, could accept transactions from Visa and Mastercard cards.
• Antitrust watchdog Cade also suspended the agreement between Cielo and Facebook because the acquirer was the market leader, and the new functionality could constitute a monopoly. Sometime later, Cade authorized the deal.

Go deeper. In November 2020, the Central Bank launched its own designed and operated instant payment system and mandated participation from all the country’s main banking institutions.

• Unlike what was presented originally by Meta for WhatsApp Pay, PIX, which had the participation of the whole chain, was free of charge for individuals...