WhatsApp recently introduced a new pricing category for international one-time passwords (OTPs), signaling a shift in its revenue strategy towards enterprise services. This move comes amidst a growing market for enterprise messaging, which includes SMS, WhatsApp Business, Google RCS, and push notifications.
Despite a substantial price hike for international OTPs, WhatsApp’s rates remain half of traditional SMS costs, aiming to attract more businesses to its platform.
Impact on International Businesses
Effective from June 1, the new pricing category for “authentication-international” messages will be INR 2.3 per message in India and Indonesia. This change is expected to affect the communication budgets of international companies like Amazon, Google, and Microsoft, which have relied on WhatsApp as a cost-effective alternative to traditional SMS. Previously, overseas businesses faced significantly higher charges for international SMS, leading WhatsApp to implement a uniform rate of INR 0.11 per OTP message for all businesses. However, under the new pricing structure, foreign companies will now be charged INR 2.3 per message, reflecting a significant increase in costs.
Navigating the Pricing Landscape
WhatsApp’s decision to adjust its pricing strategy for enterprise messages underscores its efforts to tap into the growing market for business communication services. While the price hike may pose challenges for international businesses accustomed to lower costs, WhatsApp’s rates still remain competitive compared to traditional SMS charges. This strategic move aligns with Meta’s broader goal of monetizing its messaging platforms and diversifying revenue streams in the enterprise sector.
