How Does Whatsapp Make Money? Business Model and Revenue Model of Whatsapp

In this blog, I am going to share with you How Does Whatsapp Make Money?

 WhatsApp is a messaging app that lets users interact on various platforms including android, iOS, and even the web, that used to have a subscription model for its users for an annual renewal fee. Which very few people paid, and for the rest it was being auto-renewed (for free) at the end of the subscription period.

Today the business model of WhatsApp is next to none! It is a part where Facebook is involved, the social media platform is the source for all the money-making, and WhatsApp is just a data unit that does not generate any money by itself. So, we will be looking at the business model of WhatsApp so that you can understand how does WhatsApp make money.

History of Whatsapp 

WhatsApp was created way back in 2009 by Brian Acton and Jan Koum as an answer to pricey messaging services. Over time, the app was loaded with amazing features like voice messages, video and photo sharing, etc. The user count for the app is also humongous with billions already operating it.

The messaging app works on all platforms including Android, IOS, and even Windows. And is responsible for huge data transfers every single day. But amid all of this, the question is about how does WhatsApp make money?

Understanding the WhatsApp Business Model

When WhatsApp started, the founders wanted to supply an ad-free platform that focused on user experience. When it first started, they used to charge a $1 a year subscription (sometimes offering the first year for free). However, since 2016, WhatsApp has been completely free for everybody. As of now, WhatsApp makes very little money compared to its user base, as the service remains free and free of ads.

WhatsApp Future Revenue Plans

The entire motive of Facebook behind the acquisition of WhatsApp is just the data it gathers. Facebook is a medium for marketing and they are going to gather more and more data which in turn reflects conversation patterns, live locations, behavioral information, your entire contact list, and more.

Payments

Akin to Venmo, WhatsApp introduced a Peer-to-Peer (P2P) payment solution in India. Using the country’s Unified Payments Interface (UPI), WhatsApp allows their Indian users allows to transfer money instantly between bank accounts at no charge.

This move will help them solidify their market share and compete directly with India’s Paytm and Google’s Tez.

WhatsApp for Business

WhatsApp recently launched their WhatsApp for a Business application that allows merchants and brands to interact with their customers.

Businesses can create a profile with helpful information like their address, business description, email address, and website. Then they will enable quick replies and automatic messages with the WhatsApp API.

Conclusion- So, How does WhatsApp Make Money?

The first thing to note is, that when we are online, we generate some data on every moment daily. This data includes user habits of users like reading interests, shopping, keyword research, content interests, digital watching interests, etc. When you send messages over WhatsApp, the messages first route through servers of and then sent to the receiver. This server is a smart code that analyses the data based on the content used. This data is an asset to marketers who need to know the interest of the general masses and their likes plus dislikes to build the consumer industry.

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