WhatsApp, the free messaging app that has made many users quit traditional SMS, has now grown into one of the most powerful tools for businesses. In India, the app is not just about chatting with friends and family anymore; it has become a major platform for business engagement. With a massive user base, WhatsApp has made it easier than ever for businesses to connect with their customers.
WhatsApp’s Popularity Among Indians
India has over 500 million WhatsApp users, making it nearly impossible to find someone without the app installed on their phone. Whether it’s family groups, client meetings, study groups, or school chats, WhatsApp has taken over all forms of social communication. So, it’s no surprise that businesses also jumped onto this platform to interact with their customers.
In India alone, 300 million copies of WhatsApp Business, a version of the app tailored for businesses, have been downloaded. Small business owners were quick to realize the potential of reaching out to customers where they spend most of their time. As a result, WhatsApp Business has become one of the most widely used tools in India for companies to connect with consumers, leading to a massive increase in revenue for the platform.
In fact, Meta, the company that owns WhatsApp, has seen its revenue from the business side of the app double in just the past year. This has led to WhatsApp becoming a key player in the digital business market in India, especially for small business owners.
How WhatsApp Makes Money
You may have noticed that WhatsApp isn’t just for personal conversations anymore. Businesses have been sending out more and more messages for e-commerce updates, hotel bookings, and even insurance offers. This trend is called “click-to-WhatsApp” ads. It allows businesses to connect with their audience on platforms like Facebook, Google, and Instagram, and then continue the conversation on WhatsApp itself.
But here’s the catch: while regular users can message for free, businesses have to pay a fee to send messages on WhatsApp. This is how WhatsApp is monetizing its business messaging feature. The platform recently changed its pricing policy to better suit the needs of businesses. Instead of charging a flat rate, WhatsApp now breaks down its pricing into four categories:
- Utility Messages: ₹0.10 per message.
- Marketing Messages: ₹0.7846 per message.
- Authentication Messages: ₹0.11 per message.
- Service Conversations (when the user initiates the chat): ₹0.2906 per conversation.
This pricing model has proven to be successful for both WhatsApp and businesses alike. For example, Haptik, a company that builds business commerce platforms within WhatsApp, revealed that JioMart, a major e-commerce player, receives an average of 1,500 daily orders through WhatsApp. What’s more, the platform has a 68% repeat rate and a 15% conversion rate, meaning businesses are seeing great returns on their investments in WhatsApp Business.
WhatsApp’s Expanding Features for Businesses
The success of WhatsApp Business has led the platform to roll out even more features to support companies in their efforts to reach customers.
- WhatsApp Flows: This new feature allows businesses to set up automated chat systems where customers can select products, book appointments, and even complete orders just by interacting with a chat. It improves the efficiency and smoothness of corporate communication.
- WhatsApp Payments: Launched two years ago, the ability to pay directly within the app has gained traction. The amount of money exchanged via WhatsApp has increased just in the last six months. This is a clear sign that users are embracing the idea of handling everything—from chatting to payments—within one app.
- Booking Tickets: WhatsApp has even made it possible for users to book tickets for public transport. Earlier this year, WhatsApp introduced a feature to book Bangalore metro tickets. Since then, six out of India’s nine major metro systems have joined the platform. In Delhi, WhatsApp users can also book bus tickets for the Delhi Transport Corporation (DTC), with over six million ticketing transactions completed already. The target was initially set at two million transactions, so this success far exceeded expectations.
- Meta Verified Badges: WhatsApp also offers small businesses the chance to earn Meta Verified badges, which provide features like impersonation protection and account support. These badges help small businesses establish credibility and trust with their customers, especially in the crowded digital space.
AI on WhatsApp: What’s Coming Next
Though these features are already live, Meta is also looking to take WhatsApp Business to the next level with the introduction of artificial intelligence (AI). Meta is currently testing AI-powered customer service agents on WhatsApp. Soon, businesses will be able to provide customer support with AI agents that can help answer complex questions, such as those related to flight cancellations or purchasing insurance policies. These agents will be fully aware of the ongoing chat conversation, making it easier for users to get the help they need without having to repeat themselves.
Singapore and the US are also testing AI aides. These assistants will help small businesses design personalized ads, making it even easier for companies to market their products and services directly through WhatsApp.
WhatsApp’s potential to serve as a business platform is clearly growing, and with the addition of AI, it seems set to become even more efficient and effective for companies looking to engage with customers.
WhatsApp has also launched an initiative known as ‘WhatsApp Bharat Yatra’ to train over 20,000 small businesses in smaller cities across India. By offering training in 10 different locations, this initiative is helping businesses understand how to better use WhatsApp to connect with customers.
WhatsApp continues to evolve, offering businesses a valuable platform for customer engagement, while providing users with more than just a messaging app.
