Brazil regulator is in the process of reverting the suspension of WhatsApp's partnership with Cielo

The Administrative Council for Economic Defense (CADE) declared it would be reverting the ban on the partnership between Facebook's WhatsApp and Brazilian card operator Cielo.

According to Reuters, the ban was placed due to early information from Facebook and Cielo stated that they would not compromise users' choices nor would they limit other deals with rival companies. Cielo is the largest card operator in Brazil, flaunting a 41 percent market share.

CADE had previously been perturbed about favoritism as the partnership with WhatsApp could increase Cielo's card transaction profits by 10 percent.

Although CADE has allowed the partnership between WhatsApp and Cielo they said that they would continue to investigate the deal and that restriction on WhatsApp's deals with other partnership giants like Visa and MasterCard would not be lifted.

A spokesperson for WhatsApp expressed gratitude for relaxation of the ban and said that it would greatly ease the people of Brazil so that they could send and receive money to and from family and friends and could conduct purchases right on WhatsApp.

Last week CADE imposed a suspension on the payment service partnerships between WhatsApp and Visa, MasterCard, and Cielo. CADE feared that as Brazil is the second-biggest market worldwide for WhatsApp, they would infringe on competition and as well as on data privacy and efficiency.

CADE has stated that they want to protect a banking system that is competitive and payments infrastructure already exists that allows for quick, easy, and safe payments.

CADE says that the suspension imposed as a precautionary measure and that they wanted to bar the partnership before any incidents officially occurred. The relaxation of the ban is a big win for Facebook as Brazil was the first country where this new payment system was launched and now the company has the potential to gain feedback and improve its system before making it available worldwide as they no doubt intend to.

Brazil has one hundred and twenty million WhatsApp users which makes it second only to India in terms of total popularity.

The launch of these partnerships is just another step in Facebook's gameplan of entering the payments market in a major manner. The recent unveiling of Facebook Pay and its various other ploys to make it easier for users to conduct transactions and make payments from their platforms is an example of their tenacity to enter the payments business in an impactful manner. This would mean that Facebook is looking to move into other eCommerce related businesses and this seems to be the first step in their seemingly long term plan.

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