WhatsApp scrambled to rescue its ailing mobile payments play, opening talks with Brazil’s central bank regarding restoring the service, which was suspended barely a week after launch.
In a statement, WhatsApp head Will Cathcart said Banco Central do Brasil intended to “find a path for the service to proceed by working with Visa and Mastercard” along with “other authorities” to address issues with the service.
The company cited the economic impact of Covid-19 (coronavirus) as evidence of the need for digital payment platforms, with Cathcart stating the business supported “a pro-competitive, open payments model” alongside the central bank’s PIX platform “when it becomes available.”
Adding to WhatsApp’s woes was a move by competition authority Conselho Administrativo de Defesa Economica (CADE), which issued an injunction on a partnership with local credit card company Cielo.
In a statement, CADE cited Cielo’s existing high market share, explaining the WhatsApp collaboration could result in it garnering “significant market power”.Subscribe to our daily newsletter Back