The second-largest market for WhatsApp, Brazil has suspended WhatsApp’s mobile payment service in the country only after a week of its launch.
The central bank of Brazil in a statement said that it has taken this decision to “preserve an adequate competitive environment” in the mobile payments market and to make sure that “functioning of a payment system that’s interchangeable, fast, secure, transparent, open and cheap.”
In Brazil, banks have asked the WhatsApp payment partners Mastercard and Visa to suspend the WhatsApp payment services on the app and if they fail to comply with the order they would face fines and administrative sanctions.
The central bank of Brazil in a statement said that it did not get the opportunity to analyze the payment service of WhatsApp before it was launched.
Now, this announcement by Brazil’s central bank is a major setback for Facebook. The company began testing WhatsApp pay in India two years back. It had yet to receive regulatory approval to expand its services in the country. Other than India and Brazil, WhatsApp pay was also being tested in Mexico.
WhatsApp spokesperson said that the aim of the company is to use an “open model” and it is still working with the “local partners and the Central Bank to make this possible.”
Adding, “In addition, we support the Central Bank’s PIX project on digital payments and together with our partners are committed to work with the Central Bank to integrate our systems when PIX becomes available.”