Social-Media
The Chief of the Central Bank says WhatsApp Payments Face Further Review
On Thursday, President of the Brazilian central bank said that Facebook Messaging Service WhatsApp is allowed to launch the country's new payment system, but called for evidence that the WhatsApp can operate safely in a competitive market in terms of data protection.
"We don't want them to ask for authorisation and show us how it works for us to make it competitive," said Roberto Campos Neto in a webcast organized by the local Correio Braziliense newspaper. "It's not competitive.
WhatsApp did not comment immediately on the remarks made by Campos Neto.
The largest social media platform worldwide announced on June 15 that WhatsApp 's paid service was first nationally deployed in Brazil, enabling users to send money to individuals or local companies in a chat.
A week later however, Cade suspended the service from the Brazilian central bank and antitrustee, citing potential competition damage, efficiency and data privacy. WhatsApp partnerships with Visa , Mastercard and Cielo SA have been blocked by the regulators.
Cade revoked his decision on Tuesday by saying that both Cielo and Facebook indicated that preliminary information would not limit new deals with competitors and would not reduce consumer choice.
Campos Neto noted that WhatsApp's payment service, which the central bank considers significant and therefore requires a more thorough analyze, would start operation with 120 million users-their Brazilian customer base.
The central bank has not prohibited anything, but is ready to allow it once it has been given the same procedural handling as other arrangements, he said. "The central bank does nothing.
Once it has become a competitive arrangement and data protection, it is proven to be a necessary one, as we understand it, it will be approved, added Campos Neto.
