WhatsApp Paves the Way for Monetization Through Direct Business Communication with Users

In the aftermath of the stinging backlash that WhatsApp faced upon announcing its plan of sharing user data with parent company Facebook, the globally-renowned messaging service appears to be uncovering alternate channels for leveraging its capabilities and validating its colossal $19 billion acquisition.

According to a report by Reuters, in an interesting bid to extract financial gain, WhatsApp is now in the phase of testing a new service that enables businesses to get in touch with users, thereby potentially transforming them into prospective customers.

Highlighting the focal point of these tests, a handful of businesses incorporated under the Y Combinator startup incubator have been engaged. This development is a considerable indication of the distinctive route WhatsApp might be heading towards for churning out profits from its globally recognized service. What’s noteworthy is that ever since its acquisition by Facebook Inc., it has not chalked out a palpable business model.

Up until recently, WhatsApp levied an annual membership fee of $0.99, which functioned as its chief revenue source. This practice was discontinued post its takeover by Facebook. However, the new proposed revenue generation model is by no means without pitfalls. One glaring concern is the potential for spam. It’s arguably implicit that the advent of mass messaging access to businesses could create an ideal environment for misuse. Illustratively, companies using VoIP based systems for mass calls have somehow resulted in considerable abuse, and not in a positive context.

In its defense, WhatsApp asserts that it is devoting substantial efforts to ensure that spam does not encroach upon this service’s credibility. The company is also extending out to users and conducting surveys to apprehend the extent of their interaction with businesses on their platform. Users’ encounter with spam, if any, and the measures henceforth to combat this are also under severe scrutiny.

Amid this, there’s a shroud of anticipation enveloping the actual implementation of this business messaging service. Participants in the trial stage, including Cowlar Inc, eagerly anticipate this service. Co-founder Umer Ilyas stated that the company aims to utilize WhatsApp to forward automatic alerts from its technological collars to farmers, in the event of livestock showing signs of abnormal behavior.

Currently, WhatsApp boasts a user base exceeding a billion, which in tandem with Facebook-owned Messenger, constitutes a mind-numbing combined user strength exceeding 2 billion. As per data, these two platforms process over 60 billion messages daily, outpacing the 20 billion processed by telecom companies. This translates to an immense wealth of data and potential interaction that could potentially transform the platform into a booming marketplace.