In this article, we will know about how to do Cryptocurrency Payments on Whatsapp with Novi Digital Wallet.
Cryptocurrency Payments on WhatsApp
With Meta, previously known as Facebook, is launching its crypto wallet called Novi Digital Wallet; it has soon become the talk of the town.
It is initially launched as a pilot project for a limited number of users in the US to send and receive crypto payments via the Novi Digital Wallet within their chat. Here is what you need to know about Cryptocurrency Payments on Whatsapp.
What is Novi Digital Wallet?
Novi is a Digital wallet from Facebook.
Novi digital wallet claims it has the mission to make move faster around the world. It offers to send and receive money instantly without any fees, and also provides a secure transaction environment.
Facebook’s Novi is currently using USDP (PAX Dollar) a stable coin to facilitate the service. In the future company plans to use Diem instead of USDP for the same.
What is Whatsapp Crypto Payments?
Whatsapp Cryptocurrency Payments is a crypto payments feature launched by Meta-owned Whatsapp. The feature is currently available to a limited number of users in the US through the Novi digital wallet of the company.
Whatsapp head Will Cathcart confirmed the announcement by adding that the feature is currently being rolled out to a select group of users only.
The Novi digital wallet is Meta’s own digital wallet that began rolling out back in October this year in the US and Guatemala, though the WhatsApp crypto payment feature is limited to the US.
It will allow users to send and receive money “instantly, securely, and with no fees” and uses the Paxos stablecoin, which Novi relies on.
Will Cathcart wrote in a tweet, “New in the US: use your Novi digital wallet to send and receive money right within a WhatsApp chat. People use WA to coordinate sending money to loved ones, and now Novi will help them do that securely, instantly, and with no fees.”
How do the new Whatsapp Crypto Payments work?
Meta, erstwhile Facebook, is behind the Novi project that is currently piloting in the US and Guatemala. As of now, only USA users can access the new WhatsApp transfer service.
For using this payment functionality or feature, the US residents have to sign up for a waitlist. The WhatsApp crypto payment works with only currency – the dollar. It has been pegged as a stablecoin Pax Dollar (USDP).
Create a Novi Wallet
Novi began piloting its wallet in October. To set this up, Whatsapp will ask for your personal info and photo identity proof. Novi may require additional information as and when required.
Transfer money through Whatsapp
Click on the paperclip icon that you use to send a file, contact, or photo. Then choose the option “Payment” and follow the instructions as shown to log into Novi.
Novi promises that the users are charged no fees to transfer money from one user to another. This point sets it apart from the major cryptocurrency exchanges as they often charge a withdrawal fee or deposit.
With Novi, the users will not have to pay any charges or fees for deposit or withdrawal of money.
Alongside this, there is no markup on the transfer rates and no charge for making an international transfer as well.
However, the users might have banking charges and taxes to pay on certain transactions that they make.
Concerning security for users, Novi states that money from any unauthorized transfers will be refunded. It has also committed that any personal information provided by you will be encrypted.
What does it mean for crypto investors?
The Novi wallet and Whatsapp functionality stand as another attempt by Meta, erstwhile Facebook to move into the cryptocurrency space.
The company has faced repeated regulatory hurdles in launching its stablecoin, Diem. Instead, it has partnered with Paxos and Coinbase to use the Pax Dollar in the Novi wallet — at least for now. Meta, previously Facebook, still hopes to launch its own Diem stablecoin.
Talking about the cryptocurrency industry on one level – it can be hard to say what this means or indicates. On one hand, any increased adoption is a positive indicator along with bringing in big savings on international transfers for Novi users.
According to the estimates of the World Bank, 6.3% of every dollar that is sent internationally is lost to remittance fees.
However, it isn’t clear how much the users will pay to convert their Pax dollars into their native currency.
But, if Novi can roll out worldwide free transfers, it will almost for sure make a huge difference to the users who want to transfer funds internationally.
On the contrary, many long-term crypto enthusiasts believe that the involvement of big industry players like Meta, previously Facebook, runs opposite to the whole ethos of cryptocurrency.
Decentralization — cutting out the intermediary — is one of the key ideas behind Bitcoin and other cryptocurrencies.
Decentralization doesn’t only apply to finance. For example, blockchain technology could also change the way people use social media platforms.
A blockchain-based, decentralized internet could help users take back control of their personal information.
But Meta’s move into digital currencies does the opposite. It puts Meta — which has already come under fire for the way it monetizes users’ personal data — back into the middle of these transactions.
With more and more big business names getting involved in the crypto space, it has given birth to an ideological battle between community-run projects, centralized corporate entities, and decentralization.
Such companies, if they succeed, can change the face of the crypto industry.
Whatsapp Cryptocurrency Payments in News
The head of Meta-owned digital wallet and Fintech unit Novi, Stephane Kasriel tweeted that a limited number of US-based WhatsApp users can now send and receive money via Novi. Novi – which uses the stablecoin Pax Dollar (USDP) – began testing transfers between the US and Guatemala in October.
The feature will let users access Novi and initiate transfers directly within WhatsApp.
Novi was intended to launch with Meta-backed digital currency Diem (formerly known as Libra). However, regulatory and technical missteps with the project likely led the unit to instead use USDP.
Former Novi head David Marcus stated Meta still plans on launching Novi with Diem after the digital currency receives regulatory approval.
Whatsapp crypto payments can bring a lot on the plate for different crypto players as well as the whole crypto industry. However, how things will go will unfold with the pilot running.
The scenario of this could be made clearer with the insights gained after the users use the feature on Whatsapp.
Hello! My name is Mansi Shrivastava who happens to have a knack for writing. It has not always been what I admired but developing into a writer was something I appreciate the most now. When not glued to the computer screen, I love to try my hand in arts and crafts. Also, binge-watching with a bowl of snacks has always been my thing.
You may also read:-