Facebook Inc. has recently announced that they plan to offer hosting services and also in-app purchases on WhatsApp messaging app. Facebook says this decision has been made after the company wanted to increase their revenues from this messaging app and also increasing e-commerce services through the firm.
The world’s largest social media firm has been planning to raise revenues from higher-growth products like WhatsApp and Instagram, which it acquired for $19 billion in 2014 but have been unable to monetize it so far.
With the updates, WhatsApp will allow companies to sell goods inside WhatsApp through Facebook Shops, an online service introduced in May to provide a cohesive shopping experience through Facebook applications.
The business will also be exploring the cloud computing market, giving firms using its customer support messaging services the option to store such messages on Facebook servers.
The COO of WhatsApp, Matt Idema, said during an interview that the Shopping Tool will begin rolling out later this year, while Message Hosting will be accessible in 2021.
Idema stated WhatsApp will provide the hosting service free – of – charge in an effort to lure potential paying users to its business tools that charge 0.5 cents to 9 cents per message sent.
The application has a comparatively small user base of tens of thousands of companies, while tens of millions are using its more restricted free resources targeted at smaller companies.
In general, upwards of 175 million users communicate with WhatsApp every day, Idema stated.
“Today’s income is tiny relative to Facebook, however we believe the potential is pretty high,” he said.
Idema also said that chats with a company using the new hosting service would show that those messages are held somewhere else and not secured by end-to – end encryption.
Facebook does not use the message data saved on its servers for any commercial purposes, he said.