WhatsApp today begins beta testing a cloud-based version its WhatsApp Business API. It is hosted on Facebook's infrastructure. The company claims that the time it takes to integrate with the API will be reduced from weeks to minutes. This allows businesses to more easily transition to WhatsApps API platform for communicating with customers who have signed up to receive their messages.
Over the last few years, the company has been steadily expanding its Business API to be one of the main ways that the otherwise-free messaging app will generate revenues. WhatsApp charges businesses per message, and rates vary depending on how many messages are sent and where they are located. Currently, tens to thousands of larger companies have adopted the API (noncloud based), including brands such as Vodafone, Coppel Mexico, Sears Mexico and BMW.
WhatsApp will continue to support the older API version. They don't plan to force users to switch to the cloud-based version. Both APIs can be used for free.
Businesses using the WhatsApp Business API should work with Twilio or Zendesk to integrate the API with their backend systems. These cases often show WhatsApp as only one component of a company's customer communication strategy. They might also direct communication with customers to other channels like email or SMS. The API integration process can take several weeks or even a whole month.
Many companies don't want to wait so long to get up and running with new systems, as the pandemic has accelerated an online shopping shift that was already in place before Covid.
The cloud-based API is designed to make things easier and faster for technical integration.
Beta testers of the new API include a few dozen WhatsApp solution provider partners such as Zendesk in America, Take in Brazil, MessageBird, and MessageBird, both in the E.U.
In a statement, Mike Gozzo (Zendesk Vice President of Product), stated that the Cloud API is a significant step towards simplifying WhatsApp for service providers such as us and our customers. He said that we will be able to focus more on the rich features of the API by not having to worry about hosting WhatsApp Clients.
This launch occurs at a moment when people are changing the way they connect with businesses. WhatsApp reports that over 175 million WhatsApp users now message businesses every day. This trend is especially evident in non-U.S. countries like India, Brazil and Indonesia. WhatsApp is also seeing consumers opting to use messaging to communicate with businesses instead of 1-800 numbers, which can be confusing and cause them to be put on hold. Customers find this annoying. Call centers can also be costly for businesses to run.
A survey conducted by WhatsApp last year shows that WhatsApp users prefer messaging to calling. The survey found that 75% said they would prefer to be able communicate with businesses via messaging. 68% of respondents said that being able to communicate with businesses via messaging was a key factor in their decision to do business with or purchase from them.
WhatsApp is also taking advantage of the trend in another way. Click-to-chat ads, which appear in Facebook's News Feed and Instagram, are another significant revenue stream. These ads allow users to send messages to businesses on WhatsApp by clicking a button.
The company is also addressing the small business market through its WhatsApp Business App. This app allows local shops like mom-and pops to go online and reach customers. After its 2018 launch, it now has 50 million global users.
WhatsApp had worked on several API improvements before today's Cloud API launch. These improvements included a faster response time for inbound messages for businesses and support for various types of messages such as out-of stock alerts for customers who opt in. (Before WhatsApps API, the focus was on timely notifications such as sending boarding passes for flights, for example,
According to the company, customers who receive communications from business will see an informative message at top of their conversation. This will inform them that this experience is different than messaging with family or friends (which is fully encrypted). Customers have the option to stop receiving communications from businesses in many different ways depending on which business they support. Customers may opt out by simply texting the business to stop, or visiting the company's website to request a change. The easiest option is to simply block the company in the app.
Cloud API will arrive in limited beta today. Only select partners will be able to onboard their first clients within the next few days.
WhatsApp however plans to open the API to other solution providers as well as to businesses starting in 2022.
