WhatsApp have more than 1.5 billion monthly active users that send trillions of messages, photos, videos, contacts, places and more. Most students send their notes, team discussion and as well girlfriend/boyfriend on the platform. But the thing is WhatsApp is completely free. You can use it for unlimited sharing. There is no restriction at all. But have you ever ask yourself this question, how does WhatsApp make money?
Whatsapp was developed by Jan Koum and Brian Acton in early months of 2009 as a Status update application hence theat was what brought the name Whatsapp. It was later updated to Whatsapp 2.0 which transformed it into an Instant Messaging Application and this was what started the real story.
Facebook’s CEO Mark Zuckerberg acquired WhatsApp on February 2014 for $19 billion and all the employees were put to Facebook payrolls including Koum, who was part of Facebook’s board as Facebook Inc. director
Before Koum left the company on Monday, April 30 2018 due to the fact that, Koum was in disagreement with Facebook due to the fact that he was concerned about the way Facebook would start using people’s data on WhatsApp to make money and its desire to allow advertisement on the platform, According to the Washington Post. Koum’s old business partner and fellow WhatsApp co-founder Brian Acton left the company last year and subsequently invested some $50 million in Signal, a rival messaging app that focuses entirely on privacy and security. Koum, along with his co-founder, Brian Action, has long been an advocate for the privacy of WhatsApp users.
As at February 2018, WhatsApp had 1.5 billion users, and it became Facebook’s second largest property, it surpasses Facebook Messenger which is third and Instagram which is fourth.
WhatsApp is Free to download, you can send and receive Unlimited messages, photos and videos. So you may get doubt, How Does WhatsApp make money without ads?
Whatsapp has introduced a payments option (P2P payments) within the application for Indian users, because highest users of WhatsApp are from India. Currently in India, no one paid a single dollar to use it.
A few people paying 1 dollar and these people are mainly from rich countries probably they don’t know how to use WhatsApp without paying anything. or they are not taking care of one dollar. but if you do not pay, it will automatically subscribe to next year…! Whatsapp is making money using this way only.
Facebook has launched Whatsapp Business application which lets users build their business profile and become a verified business on WhatsApp. The verified businesses can create their business profile along with certain important links to their website or facebook page, set up autoresponders, can even link their landline numbers with Whatsapp and can even integrate the Whatsapp for Business API with their product offering. The Whatsapp Business application is currently free to download and use for small businesses. Whatsapp also makes money through Whatsapp for Business API as well.
Also according to the Economic Times, the company has plans to let businesses use the status feature, where text, photos, videos and animated GIFs can be shared for 24 hours, to advertise and promote their business.
WhatsApp, as well as other messaging providers (including Apple), have been in hot water with governments around the world after it was determined that terrorists used apps to communicate before, and during, attacks. Governments and counter terrorism agencies wanted the companies behind these apps to share the encryption key in order to gain access to messages sent and received by the terrorists. The companies, however, refused to oblige. This led to WhatsApp’s adoption of end-to-end encryption, which prevents anyone, including WhatsApp, except the sender and receiver from gaining access to the data shared on the app.