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May 5, 2021

WhatsApp resumes money transfer services in Brazil

Facebook’s instant messaging service WhatsApp has re-launched money transfer services in Brazil.

The move was announced by Facebook CEO Mark Zuckerberg in a video.

The services resumed nearly a year after the central bank of country banned it citing competition concerns.

According to a Reuters report, WhatsApp users will be able to make individual fund transfers up to BRL5,000 ($918.31) per month for free.

However, the system will allow only 20 transfers or transaction up to BRL1,000 initially.

The roll out of the new feature will be in phases, the news agency added quoting WhatsApp COO Matthew Idema.

However, WhatsApp Brazil is yet to receive the approval for the rollout of merchant payment services. Currently, talks are on with the authorities and it is expected to be launched later this year.

Notably, Brazil is the second market after India where WhatsApp launched remittance services. The messaging app has around 120 million users in the country.

In June last year, the Central Bank of Brazil suspended WhatsApp payments service some days after it was launched.

Subsequently, Facebook established a new unit called Facebook Pagamentos do Brasil to meet regulatory requirements.

Last month, it was reported that Brazil-based payments firm Elo is planning an IPO later this year. The move is expected to value the company at around $7bn.

The company is said to have roped in six banks to manage the IPO on Nasdaq.

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