Many people wonder how does WhatsApp earn money. There are several ways for it to do so, including charging a subscription fee, allowing merchants to charge you for their services, and even offering a payment feature. Here are some of these options and how they work. If you’re a business owner, you may want to consider implementing some of these methods for generating revenue for your business. Read on to find out how WhatsApp makes money.
How WhatsApp earns money
The company’s initial revenue from the free service was small. In fact, the company spent little on marketing or ads. Their biggest cost was in SMS charges. After Facebook bought WhatsApp, however, WhatsApp added a business application, which is free to use. But the question remains, how does WhatsApp earn money? And is it worth the price? Here’s what’s happening behind the scenes to make it profitable. Despite its controversial past, WhatsApp continues to grow at a rapid pace.
WhatsApp used to make money by charging $1 per year for premium messages, but now it runs entirely free. The new management is expected to create a revenue model in the future. One of the options is to test digital payment systems in some regions. Meanwhile, it recently launched a beta version of the Business app for businesses. However, Facebook does not share this information with the public. It’s unclear how this will affect the company’s future revenue.
It charges a subscription fee
WhatsApp charges a subscription fee to its users in some countries, including India, and will soon stop charging for the app completely. While most users don’t mind paying $1 per year to use the app, richer countries don’t. They can easily renew the subscription, and the money adds up. WhatsApp is still working to figure out how to make money using this model. In the meantime, it has many other revenue-generating strategies.
Facebook acquired WhatsApp in 2014, and its founders were reassured that the company would respect their independence, and that the company would not place any pressure on them to monetize the app. While Zuckerberg promised that the company would not introduce ads into the app for at least five years, Brian proposed a metered-user model. The fee is estimated at $4 a year, and the company hopes to make up to $5 billion a year using this model.
It charges for slow replies to customers
Businesses will pay WhatsApp if they take too long to reply to customers. Currently, businesses only pay for the message replies that take more than 24 hours. However, the API that Facebook plans to launch will allow companies to communicate faster and provide better customer service. WhatsApp is already used by almost 1.5 billion people. It may replace customer support systems in some businesses. But before it does, it should be clear what it is charging businesses for.
First, you may not be aware that WhatsApp charges businesses for slow replies to customers. It allows businesses to reply to customers for free for the first 24 hours. After that, you will have to pay for every message sent by your business. This fee is called the API charge and is fixed for all countries. Alternatively, you can use your own tools or apps to send messages. But, in the case of slow replies, you might have to pay a fee if you do not want to deal with the issues that WhatsApp causes.
It offers a payment feature
WhatsApp has introduced a new payment feature for its messenger service. Users can now transfer money via UPI from one bank account to another by simply requesting payments from a contact. To use this feature, users must first complete the registration process and accept the relevant terms and conditions. Once done, they must choose a Facebook Pay pin, enter their personal details, and enable the payment feature in their WhatsApp chats. Once enabled, users can start initiating payments to their contacts.
The new payment feature in WhatsApp lets brands interact with customers using the messaging platform. For example, if a customer is on WhatsApp, they can browse a product catalog and share the details with their friends in a chat, and discuss the payment options with the merchant in the chat. In this way, brands can keep in touch with their customers and build brand trust and loyalty. Using this feature, brands can keep customers updated on new products and deals.