How WhatsApp Makes Money

WhatsApp has undoubtedly become the most used messaging app in the world.


Most of us wake up in the morning and the first thing we do is check WhatsApp messages on our mobile phones. From good morning messages to using WhatsApp for online banking Currently, there are more than 2 billion active WhatsApp users in the world. But as WhatsApp users, we all know that WhatsApp is a free app. Similarly, we don’t see any ads when using WhatsApp. So here comes the question of how and why WhatsApp provides services to its more than two billion users without any cost.

How WhatsApp makes money

What is WhatsApp’s business model?

Friends, in today’s article, we will explore the answers to these questions.

Brain Action and Jan koum create WhatsApp in 2009

The story of this startup started when they both left their jobs at Yahoo and started traveling around the world. But they soon ran out of savings and had to reapply for work in different places. After being rejected for work from Twitter and Facebook, they were quite disappointed, but after this setback, they embarked on a new journey in life

Jan Koum was inspired by WhatsApp so that

when Jan went to the gym to work out, he couldn’t call his friends on the phone. He thought there should be an app where he could update his status that he was currently at the gym so his friends would know and not call him. Based on this idea, he created an iPhone application called WhatsApp.

The word WhatsApp comes from what is happening

means that through this app you can find out your status I’m at the gym right now or I’m eating It’s interesting that WhatsApp, launched in 2009, didn’t have a messaging service. With this app, you can only update your status which other people can see in their app. But after introducing push notifications on iPhone,

Now, whenever you update your status in this app, it will send a notification to all the WhatsApp contacts in your phone list.

Although the purpose of this app was not for messaging, over time people started using it as a messaging app to some extent. For example, you update your status to say I go to the gym in response to one of your friends updating the status to say I also go to the same gym. And in this way, you can communicate with each other using these statuses.

An idea to design a messaging app

Then they thought, why not design this app as a messaging app? It was a time when in most countries of the world mobile companies charged per message for sending SMS, which was not affordable for most people. There was only one free messaging app called BlackBerry Messenger (BBM), but it required a BlackBerry mobile phone. So WhatsApp filled this gap in the market and within a few days, millions of people downloaded this app.

Considering WhatsApp’s growing popularity, some investors have also expressed a desire to buy its stock. Similarly, there was a way to make money with ads,

but friends Brian Acton and Jan Koum said they want to keep the app ad-free and run it on a no-profit, no-loss basis. In the beginning, WhatsApp did not require any financial or administrative resources to operate. A small team was created to run the application, which took care of its technical and organizational aspects. To cover these costs, WhatsApp charged its users an annual fee of $1.

WhatsApp was no longer free,

However, users had to pay $1 per year to use it. Even after this $1 annual fee, the number of downloaders was increasing day by day. In 2011, WhatsApp was in the Top Ten Apps category on the App Store. This business model made WhatsApp profitable within three years. These funds were used by the team to develop and operate the application.

Over time, more features were added, such as sending photos using the app, so that in the next few years, by February 2013, the number of WhatsApp users exceeded 200 million.

Brian Acton had a ticket on his desk that had no ads, no games, and no gimmicks. Brian Acton had a clear stance that he would keep the app as a simple messaging app that would take full care of the user’s data privacy. He said, “our product is our passion. Your data isn’t even in the picture”. By 2014, many messaging apps such as Viber, WeChat, and Facebook messenger were introduced. Facebook thought that if they bought WhatsApp there would be no competition left between Facebook and WhatsApp as a whole. In addition, the data of millions of WhatsApp users could potentially become a source of additional money for Facebook.

In 2014, Facebook CEO Mark Zuckerberg bought WhatsApp for $19 billion.

Mark Zuckerberg

Friends, the question arises here, why the requester for the protection of the personal data of users Brian Acton and Jan Koum are selling WhatsApp? The $19 billion deal was a huge draw in itself. Still, apart from that, Facebook has assured the founders and users of WhatsApp that although we are buying WhatsApp, WhatsApp will remain independent and operate independently.

So the founders of WhatsApp accepted that we will get money and we don’t have to compromise our values. In 2016, WhatsApp removed the $1 annual fee and WhatsApp became a completely free app again. This was because many countries, including people, did not have credit cards for this payment. But since Mark Zuckerberg spent $19 billion to buy WhatsApp, it became very important for him to make WhatsApp profitable. So he put a lot of pressure on the founders of WhatsApp, Brian Acton, and Jan Koum, to come up with a business model for the app.

Brin Action and Jan Koum leave WhatsApp

And then, finally, in September 2017, Brian Acton resigned and Jan Koum left shortly after. They said that they don’t agree with the policy that Facebook is trying to create regarding the privacy of users, and also that the business model that Facebook will create for WhatsApp is against their principles, so they are leaving WhatsApp.

Mark Zuckerberg thus had complete control over WhatsApp.

Facebook had some new plans for WhatsApp.

The company launched WhatsApp Business in 2018

through which users can create their company profile on WhatsApp. And verified businesses can also link their website or Facebook page to this WhatsApp business profile. This means that a link has now been created between your Facebook Pages and your WhatsApp business profile and in this way, a way was found to indirectly promote Facebook through WhatsApp because anyone using a WhatsApp business profile can visit a Facebook page with one click

Business app is free to download and use

However, WhatsApp currently makes money through the WhatsApp for Business API. API stands for Application Programming Interface. For example, when booking an Uber or Cream, you could see the Google watermark under the Uber taxi map. This does not mean that Uber is created by Google at all, but here Uber is just using the Google Maps API. Similarly, various businesses can be integrated with WhatsApp through the WhatsApp API. Businesses can thus send their customers notifications about various offers and automatically answer their questions. In addition, the API can also help users send delivery confirmations, appointment reminders, or sell event tickets.

How does WhatsApp make money through API?

The magnetization model is that business users are charged a small fee for replying to messages. This fee is set differently in different countries. It seems that this business model is not that successful and you must be wondering what businesses would use these services.

Friends, these services are used by companies that deal with millions of customers, such as travel agencies or banks, etc.

Major international companies using the WhatsApp API include Singapore Airlines,, Uber, Netflix ABL and jazz cash are among the major companies using the WhatsApp API. In addition, WhatsApp has also launched a service called WhatsApp Pay in some countries.

This is a facility provided for payments on WhatsApp Business.

WhatsApp Pay is free to use for the general public, but for businesses WhatsApp charges per transaction. There is a possibility that ads will also be placed on WhatsApp in the future. These ads are expected to play in the WhatsApp status window in the future. You need to think about current Whatsapp earnings

but the answer is not that simple, because WhatsApp is now part of Facebook, so there are no clear or separate statistics of WhatsApp’s own revenue, income statement, or balance sheet.

But we know that there are millions of businesses around the world using WhatsApp Business.

Many businesses in the world are currently run on WhatsApp only.

But right now, the most important thing that WhatsApp has is the data of billions of users.

which is the most valuable thing of this era WhatsApp’s privacy policy is very strict in its way to protect user data but with the help of computer intelligence this data can be used to show Facebook ads to users according to their needs.

Friends, in the future WhatsApp may emerge as a huge e-commerce trading platform in which various products can be sold and bought and their payments can also be made through the same platform.

whether it will be implemented or not is a question for the future So friends, how did you like today’s informative article on WhatsApp, let us know your opinion

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