WhatsApp to justify it $19bn price tag

FACEBOOK is laying the groundwork for the free messaging service WhatsApp to begin making money, allowing businesses to message its more than one billion users. It’s the first step towards monetising the platform since Facebook CEO Mark Zuckerberg agreed to pay $19-billion for the popular app in 2014.

WhatsApp announced a change to its privacy policy this week that allows businesses to communicate with users. The messages could include appointment reminders, delivery and shipping notifications or marketing material, the company said. In a blog post, WhatsApp said it would be testing these business features over the coming months. The strategy is an important step for Facebook as it attempts to make money from its most expensive acquisition.

In addition to the messages from businesses, WhatsApp said it would share more information about its users with the “Facebook family”. Data, including a person’s phone number, could be used to better target ads when browsing Facebook or Instagram, WhatsApp said.

Facebook’s other texting platform, Messenger, has also been attempting to court businesses as a way to generate revenue. Several services in Asia, most notably WeChat in China, have taken this approach.

In its blog post, WhatsApp reiterated its commitment to encryption, saying no outside parties are able to see what its users are saying to each other.