The Strategist

Central Bank of Brazil suspends WhatsApp payment service in Brazil

06/24/2020 - 05:07

The Central Bank of Brazil has suspended implementation of digital payments in WhatsApp messenger, Bloomberg reports, citing a statement by the Central Bank.

It is noted that the bank ordered Visa and Mastercard to stop conducting any operations and money transfers through WhatsApp.

According to the bank’s statement, the halt will allow the watchdog to assess any possible threat to the Brazilian payment system and determine whether it meets all the necessary requirements. The operation of the service without prior approval of the regulatory body can cause "irreparable harm (to the payment) system, especially in terms of competitiveness, efficiency and confidentiality of data," the Central Bank said.

It is noted that if Visa and Mastercard do not comply with the order, they may face a fine.

A specialist in banking regulation Tiago Severo Gomez called the bank’s decision to suspend the service without giving a detailed explanation of the reasons “strange” and “out of the ordinary”. Facebook was also surprised by this measure, notes Bloomberg.

The American company Facebook launched a money transfer service via messenger for WhatsApp users in Brazil last week.