How does WhatsApp, which is used for free, make money?
WhatsApp provides free service to common users but earns well from business API, payment service, and Facebook ads.
In today's era, there is hardly any smartphone user who does not use WhatsApp. From sending messages to video calls, photo sharing, and even payments, all these tasks are done free on WhatsApp. In such a situation, a question is bound to arise in the mind when WhatsApp does not charge a single penny from the users, then where does it earn from?
Actually, WhatsApp's way of earning is a little different. Even though common users get this app for free, but for businesses and companies it becomes a source of income.
Big income is made from WhatsApp Business API
WhatsApp has launched a special service for small and big businessmen, which is called WhatsApp Business API. Through this service, companies can talk to their customers directly on WhatsApp, such as sending order confirmation, providing customer support or giving information about offers.
To use this API, companies have to pay per message. That is, the more messages, the more WhatsApp earns.
Future expectations from payment service
In countries like India and Brazil, WhatsApp has also started a payment feature, through which users can send money to each other. Right now this facility is available without any charge, but in the future WhatsApp can plan to earn revenue from this facility as well, especially when business transactions increase.
Earning from ads in collaboration with Facebook
Ads are not shown directly on WhatsApp, but Meta (which is the parent company of WhatsApp) earns by connecting with WhatsApp through its other platforms like Facebook and Instagram. For example, if an ad appears on Facebook and the user clicks on it, then he can directly talk to that brand on WhatsApp. In this way, brands get a new way to connect with the customer, and Meta benefits from it.
Premium features of WhatsApp Business App
WhatsApp Business App is currently free for small businesses, but the company is also adding some premium tools and features to it. In the future, when these features are used on a large scale, then WhatsApp can also earn money from them.
Benefits from data
WhatsApp keeps its users' chats encrypted, which means no one can read their conversations, but some data related to the use of the app such as which features are being used more, how many times interactions are happening. Such information helps in improving Meta's advertising strategy.
