Novi tested within WhatsApp

A few days ago, Meta (formerly Facebook) announced the opening of a new channel for using the Novi digital wallet: WhatsApp. The group is thus seeking to impose Novi and WhatsApp as complementary tools within an ecosystem capable of managing exchanges, including financial ones, from end to end.

FACTS

•     A small group of American testers have been able to send and receive money via Novi from their WhatsApp accounts since 9 December. A simple message on the social network will allow money transfers to be made between family and friends.

•     The new payment option will appear directly in chats, allowing users to send or receive funds in Pax Dollar (USPD), a stable crypto-currency, in just a few clicks.

•     The service is being tested as free and secure. It is accessible through a simple connection of Novi and personal WhatsApp accounts.

•     User journey:

  •         Search for a contact to send money to and open a conversation window with them,

  •         Click on the attachment icon (a paperclip on Android, a "+" on iOS),

  •         Select the "payment" feature,

  •         Follow the instructions to attach the Novi and WhatsApp accounts.

ISSUES

•     A co-creative effort: Stephane Kasriel, current Novi project manager, insisted in the announcement of the launch of the new pilot phase, that this opening of WhatsApp to Novi was in response to a need expressed by users of Meta services. WhatsApp is indeed a means of communication used by families and relatives to coordinate, especially on financial matters. Novi's installation on this channel is therefore the way to make an unexpected use of the instant messaging service a reality.

•     A test before a possible extension: Meta intends to decide on the geographical extension of this new functionality after analysing the feedback from its testers on its effectiveness and relevance. The countries considered for this potential extension have not been specified.

•     A perpetual enrichment: WhatsApp is far from being considered as a simple instant messaging service within the Meta group. Facebook was in charge of boosting WhatsApp with many new features throughout 2020.

MARKET PERSPECTIVE

•     WhatsApp already offered a payment feature, WhatsApp Pay, in Brazil and India. However, the rollout of these initiatives has not been without its challenges; India has a maximum of 40 million users allowed for the service and Brazil has tightened its regulations to limit its ambitions.

•     More generally, Meta is now banking on Novi to make its mark on the payment market. While the wallet was launched without the web giant's stable homegrown corner Diem, the group is shifting into higher gear to roll out its offering despite the barriers along the way.