WhatsApp launches business app; free for SMBs, will charge big enterprises

In what could be seen as the platform's first step towards monetization, WhatsApp has announced that it is working on and testing tools that will enable businesses, both big and small to communicate useful notifications to their customers like flight times, delivery confirmations, and other updates.

"In the coming months, we'll be testing new features that aim to solve some of the challenges (for businesses), and make it easier for people to communicate with the businesses they want to reach on WhatsApp" the company said in an official blogpost. "Our approach is simple – we want to apply what we've learned helping people connect with each other to helping people connect with businesses that are important to them."

WhatsApp will also offer a free app to small-to-medium sized businesses, though it hasn’t outlined the specific functionality of the app. The messaging platform also plans to eventually charge companies to use some future features. In an interview with WSJ, WhatsApp chief operating officer Matt Idema said “We want to put a basic foundation in place to allow people to message businesses and for them to get the responses that they want. We do intend on charging businesses in the future.”

Last week, WhatsApp said that it is introducing verified badges to select business accounts to make it easier for consumers and businesses to communicate with each other. Online entertainment ticketing platform BookMyShow is among the initial set of pilot partners.

WhatsApp has always refused to introduce ads on its platform, be it when Facebook acquired it in 2014, and also when it stopped charging subscription fee. This means that charging businesses for tools is currently the only feasible option for WhatsApp towards monetization and given its huge user base, it should get the company significant revenue.