Technology

Brazil's Central Bank suspends WhatsApp Pay service

Any failure to comply with the determination will result in a fine of BRL 500,000 for the companies involved

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Brazil’s Central Bank and the Administrative Council for Economic Defense (Cade) decided to suspend the operation of WhatsApp Pay. The service was launched in the country on the 15th.

In a statement, the Central Bank said it had determined that Visa and Mastercard suspend the start of activities or immediately cease using WhatsApp Pay.

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According to the monetary authority, the decision was taken so that it can “assess any risks to the proper functioning of the Brazilian Payment System (SPB) and verify compliance with the principles and rules provided for in Law 12.865, of 2013. The possible start or continuity of operations without the prior analysis of the Regulator could generate irreparable damage to the SPB, notably with regard to competition, efficiency, and data privacy “.

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According to UOL, any failure to comply with the Central Bank’s determination will result in a fine of BRL 500,000 for the companies involved. On Wednesday, the entity’s president Roberto Campos Neto and other directors will meet with WhatsApp executives to address the issue.

In a note to the news portal, WhatsApp said the objective of the initiative “is to provide digital payments to all WhatsApp users in Brazil, with an open model and working with local partners and the Central Bank”. “In addition, we support the Central Bank’s PIX project, and together with our partners we are committed to integrating PIX into our systems when it is available,” says the note.