How Does WhatsApp Makes Money? (Business Model)

Whatsapp is the world’s most free to use the chat application. You never ever see an advertisement on WhatsApp. And that one is the very curious moment that owner of WhatsApp( Facebook) earns most of its revenue from advertisements. So How does WhatsApp makes money?

How Does WhatsApp Makes Money?

Today, We all using WhatsApp in our smartphones and laptops without any charges. We all also know that there is no irritating ads on WhatsApp. So all are curious that how WhatsApp makes money.

1. Why WhatsApp is free?
2. How Does WhatsApp Make Money?
3. What is a Future plan for Making Money?
4. What is WhatsApp Payment?

1. Why WhatsApp is Free?

The founders Jan Koun and Brian Acton hated advertisements and created this ad-free platform focusing just on great user experience and interface. They strongly disregard advertisements and which is why they neither did invest in the ad since the beginning of the app.whatsapp makes money

2. How Does WhatsApp Make Money?

WhatsApp is not giving any ads that’s why WhatsApp does not earn through advertisement.

They decided to come up with the paid version of the application where they charged an annual fee of $1 from the users.

WhatsApp makes money through WhatsApp for Business API. WhatsApp for Business with their systems to reach out to customers through notifications and deal with their queries automatically.

WhatsApp monetizes the service through the WhatsApp for Business API.

3. What is a Future plan for Making Money?

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.

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4. Which Service WhatsApp wants to Launch?


How Does WhatsApp Makes Money? (Business Model) 1

The answer is WhatsApp Payment!

What is WhatsApp Payment

WhatsApp Pay is an in-chat payment feature that allows users to make transactions via WhatsApp to their contact list.

WhatsApp Payments is a peer-to-peer money transfer feature that is currently only available in India. WhatsApp Pay was launched in February 2018 in India as part of a trial run. This feature is being pilot-tested with over a million users since April 2019.

How does WhatsApp makes money
How does WhatsApp makes money

How To Use WhatsApp Pay?

1. You can send money directly through chat.

2. You have to tap on the share file icon and select the payment section.

3. You can check their transaction history and account details in the payment section.

4. The payment system works on the UPI method, where fund transfers can be initiated without having to provide bank account numbers and IFSC codes of recipients.

Some important information about WhatsApp You also enjoy to read this!

WhatsApp, gives us fast, simple, secure messaging and calling for free all over the world. WhatsApp can also help medium and large businesses provide customer support.

More than 2 billion people in over 180 countries use WhatsApp. More than 5 Billion Downloads on Google Play Store.Google Play Store.

How Does WhatsApp Makes Money? (Business Model) 2

WhatsApp was founded in January 2009 by two former employees of Yahoo, Jan Koum and Brian Acton who had spent 20 years combined at Yahoo. After leaving Yahoo! Both also applied to jobs at Facebook but got rejected and later WhatsApp joined Facebook in 2014.  On February 19, 2014, Facebook acquired WhatsApp for US$19 billion, its largest acquisition to date.

April 22, 2014, WhatsApp had over 500 million monthly active users, 700 million photos and 100 million videos were being shared daily, and the messaging system was handling more than 10 billion messages each day.

WhatsApp became the world’s most popular messaging application by 2015. In January 2020, WhatsApp registers over 5 billion installs on Google Play Store. India is by far WhatsApp’s largest market in terms of the total number of users.

Some Facts regarding WhatsApp

1. WhatsApp the most banned app in the world. It is banned in 12 countries around the globe.

2. WhatsApp users open the app 23 times or more per day. 70-80 Percent of users open WhatsApp daily.

3. In 2014 Google also offered to buy WhatsApp 10 Billion Dollars but they didn’t sell after that Facebook buy it in 19 Billion Dollars.

4. WhatsApp acquisition ( 19 Billion Dollars) in 2014 is higher than some of the top global companies.

5. WhatsApp is the 3rd most downloaded App. 1st Facebook and 2nd are YouTube.


The parent company does not share the revenue breakdown of the different products it operates that’s why we don’t know how much money exactly WhatsApp makes except Facebook.

November 2017, Forbes update the revenue estimates for WhatsApp is $5 billion to $15 billion. The average revenue per user ranging from $4 to $12.

So now you get and enough idea about How does WhatsApp makes money?.

Thanks a lot for giving me your precious time to read this article!