Whatsapp Launches Cryptocurrency Payment Feature In The US, Instant, Secure And No Fees

Whatsapp launches cryptocurrency payment feature in US. (photo credit: pixabay)

JAKARTA - WhatsApp has launched a cryptocurrency payment feature for a small number of users in the United States, thanks to the integration of Novi, Facebook's digital wallet which has now been renamed Meta Platform Inc.

As reported by Macrumors, Novi's pilot program, allows users of the encrypted messaging app to send and receive money "instantly, securely, and at no cost" using the stablecoin Paxos Dollar (USPD), whose value is tied to the US dollar.

The way payments work on WhatsApp is similar to sending a regular attachment in a conversation. The user taps the plus icon (+) and then selects Payment from the menu that appears. Users who are paid this way receive USDP, which can be withdrawn to a bank account with the equivalent value in US dollars.

There's a new way to try the @Novi digital wallet. Starting today, a limited number of people in the US will be able to send and receive money using Novi on @WhatsApp, making sending money to family and friends as easy as sending a message. 💸💬 pic.twitter.com/dGz3lejri7

— Stephane Kasriel (@skasriel) December 8, 2021

There is no limit to the number of times the Novi system can be used to send and receive money via WhatsApp. Regardless of the frequency of use, there are no fees associated with keeping a balance in a Novi account or withdrawing it to a bank account.

Also, Novi's inclusion in the chat platform has no effect on the overall encryption of private messages.

This small pilot program is available to some users in the US starting today. For more information on WhatsApp integration, see the Novi website.

This trial is one result of Meta's cryptocurrency plans, which have changed since it was officially announced in 2019. At the time, the plan was to develop a cryptocurrency called Libra that would link to Facebook's digital wallet called Calibra.

However, Libra has become Diem, and Calibra has become Novi, and instead of using Diem, Novi has adopted the stablecoin Paxos in partnership with Coinbase, which is the custody partner that holds the funds for the trial.

WhatsApp already offers this payment system in India and Brazil, but it uses traditional fiat currency rather than crypto.