How Does WhatsApp Makes Money?

You might have used this messaging platform for free, but did you ever think about how does WhatsApp makes money? As you know, this messaging app is free but allows you to send media, documents, and voice notes for free. Moreover, they don’t even run in-app ads. So how does this app earn revenue for Meta?

If the question of how does WhatsApp makes money is on your mind, then this guide is for you!

How WhatsApp Makes Money?

WhatsApp does generate revenue for its parent company Meta but differently. Brian Acton and Jan Koum founded this messaging app to eliminate pricey text messaging. Since then, WhatsApp has always been a free service where people can send free messages, audio, videos, and documents.

In some regions, users could use the app for free in the first year and then renew the annual subscription at a $0.99 fee.

But now WhatsApp has shifted to a different business model to generate money:

WhatsApp For Business

While this messaging app is free for all consumers, businesses need to sign up for WhatsApp for business if they want to use the platform for sales or customer support.

Significant brands like Uber and Netflix use the WhatsApp business programming interface. They encourage businesses to use the platform to send quick responses. This Meta-owned messaging platform charges the business if there’s a delay in responding to the customer’s queries.

Businesses have to answer the queries within 24 hours. They offer features like broadcasting for business accounts so that they can announce updates in bulk. If it’s post 24 hours, they will be charged. Here is a list of charges that business accounts on WhatsApp have to pay money:

  • 2.50K messages: $0.0085/ message
  • 7.5K messages: $0.0083/ message
  • 2 million: $0.0080/ message
  • 3 million: $0.0073/ message
  • 4 million: $0.0065/ message
  • 10 million: $0.0058/ message

The more messages the company sends, the cheaper the rate. This is one of the ways how WhatsApp makes money.

WhatsApp Pay

WhatsApp Pay is another free feature allowing users to send and receive money without any extra charges. This is similar to any other digital wallet. You can send free money to your friends, family, or businesses.

You must link your bank account to receive or send funds. However, WhatsApp Pay is currently available in India, Brazil, and some regions of the United States.

So the answer to your query on how does WhatsApp makes money is simple. Though this app doesn’t run ads like the other social media platforms, it still earns revenue with two different business models.

Anasia D'Mello: