If something does not need an introduction, that would be WhatsApp. But still, WhatsApp is a free messenger app used by billions of people around the world. We all have been using the app every day for the past several years, and we are sure, at some point in time, you would’ve questioned ‘how does WhatsApp make money?’
Before we get to the part about how WhatsApp makes money, let us talk about the messaging app. It was founded in 2009 by Jan Koum and Brian Acton as an alternative to the costly traditional SMS services.
WhatsApp allows you to do practically anything you need to communicate with someone, like text messaging, voice notes, voice calling, video calling, sharing pictures, documents, audio, and location. It is also available on iOS, Android, and Windows platforms.
How does WhatsApp make money?
We are sure you would’ve noticed that WhatsApp never had any in-app advertisements, as it always wanted to steer clear of that. Hence, there are two ways WhatsApp makes money:
- WhatsApp for Business
- WhatsApp Pay
WhatsApp for Business
The services of WhatsApp are free for all the customers. However, businesses can sign up for WhatsApp for Business to add this platform to their sales and marketing strategies. All the major brands such as Netflix, Uber, Wish, and many more make the best use of the WhatsApp Business API.
Customers nowadays wish to get quick responses when dealing with a particular brand. This is what prompted many brands worldwide to use the platform and improve their customer service.
This allows businesses to respond to their customers for free within 24 hours. However, after the first 24 hours, they are required to pay a certain fee to be able to continue doing so.
Here is a breakup of how WhatsApp for Business will charge your business:
- First 250,000 messages: $0.0085 per message
- Next 750,000 messages: $0.0083 per message
- Next 2 million messages: $0.0080 per message
- Next 3 million messages: $0.0073 per message
- Next 4 million messages: $0.0065 per message
- Above 10 million messages: $0.0058 per message
Judging by this fee structure, you would have noticed that the more messages a company sends, the cheaper it will be for them.
You can also check this out How does Zerodha make money?
WhatsApp Pay
We all are familiar with digital payment apps and how convenient they can be. WhatsApp Pay is a payment feature similar to those digital payment apps which allow users to send money for free. However, the party receiving the money is charged a certain fraction of the transaction. Like any other payments app, this app also links to a bank account of your choice where the funds are credited and debited. But, as this service is relatively new, it is only available in selected countries.
Conclusion
You can not invest directly in WhatsApp, but now you know how this messaging service earns money for its parent company, Meta (previously called Facebook). The revenue generated by WhatsApp is on the rise as it has a large market share, with users increasing constantly
