Facebook has urged the Brazilian antitrust watchdog Cade to withdraw the suspension of an agreement that allowed Whatsapp to roll out its payments service in the country.
According to a Reuters report, WhatsApp-parent firm Facebook and card acquirer Cielo approached Cade for the reversal.
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In a document, the two companies noted that the agreement was not exclusive. Accordingly, it will allow rival card acquirers to enter agreements with WhatsApp messaging system.
They also argued that the partnership does not pose any competition risks.
An instant messaging service, WhatsApp introduced digital payments service in Brazil earlier this month.
However, the Central Bank of Brazil suspended the service soon after citing competition and security concerns.
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By GlobalDataThe local regulators also blocked WhatsApp’s partnerships with Visa, Mastercard and Cielo.
The WhatsApp payments service was designed to allow users send money to individuals without leaving the chat. The payment service also enabled users to make purchases from local businesses.
WhatsApp has around 120 million users in Brazil, making it the messaging app’s second largest market in the world.
Notably, the Brazilian central bank is also planning to introduce a new payments platform called PIX in November.
The service will enable users to make payments as well as withdraw cash from retail stores. Around 980 institutions are expected to offer PIX after it is launched.
