WhatsApp New User Terms Signal It’s Finally Ready to Make Some Money


On Thursday, WhatsApp updated its terms of service and privacy policy to say that it will finally start sharing user data with Facebook,
which bought the messaging app for 19 billion dollars back in 2014. Although WhatsApp promises that users will still not see any ads
within the app itself, your WhatsApp information could be used for better targeting of ads and showing “You may also know” profiles
on Facebook. Reading through the updated terms, it’s clear that this is just one small change, and that WhatsApp is actually looking to
become a very different platform now.

WhatsApp has rewritten its legal policy for the first time since 2012, ostensibly with the aim of making it easier to understand, but it
brings in a few big changes along the way. For one thing, the terms now officially reflect the fact that WhatsApp is a part of Facebook,
and secondly, they now open up the possibility of WhatsApp being used for commercial messaging. We went over the new terms in
detail, and here are some of the key points that we read, and what they mean to you.

Right at the start of the document, this point is important because it outlines the relationship between Facebook and WhatsApp,
allowing the latter to say that it doesn’t share information with third parties, while still giving your numbers to Facebook. At the same
time, it also makes clear that nothing you post on WhatsApp will be shared to Facebook, which is a reassuring sign, for now.
Since Facebook is in the picture, the next question people will naturally have is whether the texts you send will be used to further target
advertising at you. WhatsApp also reassures users here that it cannot read messages, which are encrypted end-to-end by default.
WhatsApp has grown dramatically under Facebook’s ownership, though the world’s largest social network has so far maintained a
totally hands-off approach, at least as seen from the outside. WhatsApp now has over 1 billion monthly active users, the company says,
but it’s not been making money off them as yet. At the other end of the spectrum, China’s WeChat is an economic powerhouse – it can
be used as an e-commerce platform, supports public accounts that can display ads, it’s used for taxi hailing and money transfers; none
of which can really be done using WhatsApp because there was no official API for businesses to use.
Possibly the most important part of the new update, though one that’s been glossed over by the imminent prospect of WhatsApp
sharing your contacts with Facebook – is the fact that the company is now looking at new ways for brands to use WhatsApp. We go into
more detail further down in the terms where this is explored in full, but WhatsApp makes it clear from the above text that it is looking at
entering commercial messaging. And given the enormous reach of WhatsApp, it’s possible to see it as a viable alternative to bulk SMS.

As mentioned above, WhatsApp hasn’t been a revenue driven organisation – in fact, with its no-ads policy, there was almost no way for
it to make any money. WhatsApp launched as a paid app on iOS, and then switched to a freemium model – you’d have to pay to keep
using it after a point – but it waived the fee for many users. Earlier this year, it went completely free, as WhatsApp started working on
figuring out how these commercial messages should work. The result is here in front of us now, and shows a path for WhatsApp to
finally start making money.
This is the full section dealing with new ways to use WhatsApp, and makes it clear that the company is looking to find ways to start
making some money through brands. Soon, your bank could send you a notification over WhatsApp, or you could get a message from
your airline telling you the flight is delayed. At the same time, you might be able to opt out of receiving these messages, looking at the
last line.
For businesses, this could be a very appealing prospect, as a WhatsApp message could include images, rich links, formatting, and
more, making it a much better tool for branded communication than an SMS. From a user’s perspective, at least part of the reason why
the visiting SMS is inbox is a horrible experience is because of the mindless clutter that comes from promotional and user
transactional messages – and that’s something that WhatsApp also used to believe, if you look at its earlier terms.

In 2009, WhatsApp’s policy was really simple. “We have not, we do not, and we will not ever sell your personal information to anyone.
Period. End of story,” wrote founder Jan Koum. By 2012, the policy had… evolved – WhatsApp’s policy now stated, “We do not use your
mobile phone number or other Personally Identifiable Information to send commercial or marketing messages without your consent or
except as part of a specific program or feature for which you will have the ability to opt-in or opt-out.” Today, it reads: “We will explore
ways for you and businesses to communicate with each other using WhatsApp.”

From thumbing its nose at big business, to opening up the possibility of opt-out programs to straight up exploring ways to make it
work for business, shows a marked shift in focus over the years.
And now, another part that has people a little worried – thanks to being a part of the “Facebook Family”, WhatsApp’s data will be used
to “improve and customise” other Facebook offerings. These might also use your WhatsApp data to show offers and ads. Your
messages will not be shared, for now.

The rest of the document is fairly standard and falls within typical norms – for example, in the acceptable use section WhatsApp warns
that it will delete your account for posting hate speech, obscene materials (not defined by likely meaning porn), infringing on
intellectual property (i.e. piracy), but it does so right after telling you that it can’t read your messages, and it adds that if your IP is being
infringed, you should try and resolve it by messaging the person you believe is infringing your materials. In other words, it’s fairly
standard legal language to ensure that WhatsApp doesn’t get sued for something you do while using the platform.

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