WhatsApp, owned by Meta, is rolling out its in-chat payment feature for local businesses in Singapore, allowing customers to purchase directly through the messaging app. Following successful launches in India and Brazil, the new function will initially be available to a select few Singapore-based businesses using the WhatsApp Business Platform. These businesses include Tye Tye, Baker’s 13, and Love Handle, with plans to extend the feature to others in the coming months.
Meta has partnered with Stripe, which launched Tap to Pay on Android earlier this year, to support the in-app payments for both online and offline transactions. Singapore residents with a locally registered WhatsApp number can pay using Visa, MasterCard, and American Express credit and debit cards or the PayNow fund transfer system. There is no limit on the amount a user can pay in a single transaction.
WhatsApp ensures customer information security by requiring legal name and identity verification for eligibility to use payments on its platform. The data is then sent directly to the payment partner without being processed or seen by WhatsApp. The in-chat payment feature has been built using Stripe Connect and Stripe Checkout solutions.
Businesses keen on signing up can work with WhatsApp’s business solution providers, and the platform will guide them through the process of setting up a Stripe account. Sarita Singh, Regional Head and Managing Director for Southeast Asia at Stripe, emphasised the convenience and speed of payments through WhatsApp, predicting that the new feature would help businesses expand their revenue streams and reach a wider customer base.
WhatsApp first tested its payment services in India in 2020, based on the country’s Unified Payment Interface (UPI) network. In 2022, the National Payments Corporation of India permitted Meta to expand the service to 100 million users. Subsequently, WhatsApp introduced an end-to-end shopping experience with Reliance Jio in India, enabling customers to order groceries using the app. Last month, the messaging platform launched merchant payments in Brazil, building on nearly three years of facilitating peer-to-peer payments.
As WhatsApp does not have subscription fees or adverts, its business offerings are Meta’s primary means of monetising the app. CEO Mark Zuckerberg is now leveraging the chat app’s 2 billion user base to launch payment services in various regions. Starting next month, WhatsApp will shift from a notification-based pricing system to a conversation-based pricing structure for its Business services usage.
