Jan Koum and Brian Acton created WhatsApp in the early months of 2009 as a status update application (hence the name WhatsApp). It was later upgraded to Whatsapp 2.0, transforming it into an Instant Messaging Application and kicking off the real story.
This Facebook-owned instant messaging application now has over 1 billion users worldwide. However, the question of how Does WhatsApp Make Money has been on everyone’s mind since the beginning, as WhatsApp proudly expresses its opposition to native advertisements and has not charged its users for a long time. But how does whatsapp get money?
What is whatsApp and how does it work?
WhatsApp is a free multiplatform messaging app that allows you to make video and voice calls, send text messages, and do other things using only a Wi-Fi connection.
WhatsApp, which has over 2 billion active users, is particularly popular among friends and family who live in different countries and want to stay in touch.
To begin using WhatsApp, download the app (for iOS or Android) and create an account.
You’ll notice that you’ll need your phone number to create an account after downloading the app.
WhatsApp, unlike some other platforms, does not use unique usernames. Instead, WhatsApp uses a person’s phone number to identify them. This means that anyone who uses WhatsApp is automatically added to your contact list, making setup simple.
Once you’re up and running, you’ll want to familiarize yourself with what WhatsApp can do, from making international calls to sending voice messages.
Here is what you will do:
- Open WhatsApp on your phone.
- Click the chats tab.
- Tap the green circle with a messaging icon on the bottom right of your screen.
- Choose a contact from your list or click the magnifying glass icon and type the name of the person you want to message.
- Start chatting!
If you’re attempting to meet up with friends or just want someone to know where you are,
You can also broadcast your position on WhatsApp. Simply tap the “+” symbol to the left of the enter text box in any chat and select “Location” to share your location on WhatsApp.
Ways WhatsApp Makes Money
WhatsApp does not make money from advertisements. The founders didn’t like advertisements and designed this ad-free platform with a focus solely on user experience and interface.
1. WhatsApp for Businesses
While consumers can use the service for free, businesses can sign up for WhatsApp for Business to use the platform for sales and support. Major brands such as Netflix, Uber, and Wish use the WhatsApp Business API. It initially encouraged businesses to use the platform and respond quickly. Businesses would be charged for delayed responses on WhatsApp. So, while the company could respond for free within 24 hours, any responses after that would be charged a fee.
Each month, the first 1,000 talks are free. The user or the company itself can start those interactions. A conversion that is started by a user is much less expensive than one that is started by a firm.
The 24-hour restriction is meant to motivate companies to enhance and shorten their response times. The likelihood that both parties will continue using WhatsApp is improved as a result, which raises consumer satisfaction.
2. WhatsApp Pay
Similar to PayPal, WhatsApp Pay is a payment function. Users are able to send money for free to friends, family, and companies. 3.99% of each transaction is levied to the entity receiving the funds.
Since 2018, WhatsApp has been developing a payment product. It finally launched a payment service in Brazil in June 2020, allowing users to pay each other as well as other businesses on the platform.
This app, like other money transfer services, connects to a linked bank account where funds are taken from or deposited. This service is currently only available on specific devices in India and Brazil.
Although you can’t invest directly in WhatsApp, you can learn how the market leader in messaging services generates revenue for its parent company, Facebook. As it fights to keep its market share in secure messenger services, WhatsApp is growing as a revenue generator.