How Does WhatsApp Make Money? The Hidden Truth?

How Does WhatsApp Make Money? The Hidden Truth?
Have you ever wondered WhatsApp manages to keep the instant messaging app free despite not displaying any ads?
WhatsApp is one of the most popular instant messaging apps in the world with billions of users spanning across 6 continents. The Facebook owned app has continuously wowed its users as to how they manage to keep it running without displaying advertisements or any obvious ways of monetising it.

What is WhatsApp Business Model?

The goal of every business is to generate profit and to think of it, Facebook in 2014 acquired WhatsApp from Jan Koum for a whooping US$19.3 billion. WhatsApp has kept many people wondering on how they manage to spend so much on an app without virtually any plan of monetising it.
The WhatsApp team has managed to serve its users free while paying their software developers and running advertisements to reach more people. The company has over the years mapped out different means of monetising the app while still keeping it free to all.

How Does WhatsApp Make Money?

WhatsApp has tried different approaches towards monetising their app ever since they purchased it in 2014 including introducing a $0.99 annual subscription plan. Some people believe that WhatsApp will be introducing ads to statuses sometime in 2020 but for now the company is yet to venture into any obvious way of making money from their app.
Some ways WhatsApp make money from their app include:

• WhatsApp business

WhatsApp released a standalone business app in January 2018 targeted at small business owners called WhatsApp Business. The primary goal of the company is to provide a platform for entrepreneurs to communicate with their customers using the regular chatting app.
Facebook also introduced a WhatsApp Enterprise Solution for bigger companies with global customer bases like e-commerce retailers, banks and airlines. The app will enable the brands offer customer service and conversational commerce via WhatsApp chat and Chatbot. WhatsApp will be providing APIs for businesses to help them in providing solutions or products for their customers.
In the long run, customers might not be charged for the services for life but businesses will have to pay for using the WhatsApp Business solution.

• WhatsApp Payments

WhatsApp Inc. announced that they'd be releasing a peer-to-peer money transfer feature to enable their users transfer money to other users. The new feature will give users the option of chatting, sending files and transferring money from a single app. 
Just like other payment gateways, the company will definitely earn commissions in return for payments transferred through their platform.
WhatsApp in July 2017, has received permission from the National Payments Corporation of India (NPCI) to enter into a partnership with multiple banks in July 2017 and would be launching the feature in India soon.
See more information on the WhatsApp Pay, release date, how to activate and more.

• WhatsApp Cryptocurrency

According to a report by the The New York Times on February 28, 2019, WhatsApp Inc. would be developing an in-house cryptocurrency that would be incorporated into WhatsApp. The project which is being directed by the former PayPal president David Marcus, involves over 50 engineers.
Facebook will finally have a great way of monetising its 1 billion+ users in more than 180 countries.. It appears the Facebook team is already preparing for the future of cryptocurrency.
See Next: Bitcoin | What it is, its history, who founded it, how to earn it and more

What are the WhatsApp's future plans?

What’s more in the near future for WhatsApp? There are rumours that WhatsApp will be releasing some other plans in the future including:

• In-App Ads

Scrolling through your Facebook and Instagram timeline, you'd see so many ads based on your interests. This is not yet available in WhatsApp but there are rumours that the feature might soon be released in the chatting app. This will offer brands interested in advertising their products and services an opportunity of purchasing advert spaces.

• Subscription plan

Over the years Facebook tried including an infamous yearly $0,99 subscription plan. The plan was however not popular and was removed after a while. The much I know, the Facebook team understand the power of free services and would do the much they can to keep the platform free for life.
However, who knows what the future holds? WhatsApp might still have to introduce a payment option which might probably offer more features not present in the present app.

Now you've known that WhatsApp is not a charity organisation, it's also being run for profit. What's the best strategy? Don't forget to drop us a comment and share with your friends.
Also check out these 30+ best social media sites for small business owners. The platforms were selected specially for entrepreneurs and would help you reach out to your customers without much hassles.
Next Post »