Whatsapp Launches Business Search Feature, Temporarily Only Valid In Sao Paulo

WA, does not run ads in the application. (photo: doc. unsplash)

JAKARTA - The messaging service belonging to the Facebook group, WhatsApp, on Wednesday 15 September, launched a new feature that enables business search within its app for the first time.

The company's source told Reuters also that the test was conducted in São Paulo, Brazil, which allows WhatsApp users to find stores and services through a directory in the app. This is the latest feature in Facebook's efforts to improve e-commerce on its service.

"This could be ... the primary way people start the commerce process on WhatsApp," Matt Idema, Facebook's vice president of business messaging, said in an interview this week.

WhatsApp, unlike Facebook and Instagram. WA, does not run ads in the application. Idema said previously businesses promoted their WhatsApp numbers on packaging or websites or used Facebook ads to bring users into chats on WhatsApp.

Messaging services are increasingly attracting business users, with specialized applications for small companies and APIs, or types of software interfaces, for larger businesses to connect their systems, generating revenue.

As online retail continues to thrive during the COVID-19 pandemic, Facebook has pushed for in-app shopping features across its apps. In June, Zuckerberg announced the Facebook Store feature would be extended to WhatsApp in several countries. In recent years, WhatsApp has also launched shopping tools such as product catalogs and shopping carts.

WhatsApp says the new test will cover thousands of businesses in categories such as food, retail and local services in certain São Paulo neighborhoods. Idema said India and Indonesia are good next candidates to expand the feature.

Idema stated that it was possible that WhatsApp could present in-app ads in the future.

"There's definitely a route to advertising, which is Facebook's core business model, which in the long term I think will in some form or another become part of the business model for WhatsApp," he said.

WhatsApp says about a million advertisers are currently using 'click to WhatsApp' ads on Facebook and Instagram to send users to the messaging app.

Idema said WhatsApp, which Facebook bought for $19 billion in a landmark 2014 deal but has been slow to monetize its features, is also happy with non-advertising models like building software to help businesses manage their services across Facebook's apps.