WhatsApp cuts business messaging prices to counter SMS, Google's RCS
Meta’s WhatsApp cut business messaging prices by 16-97% in several countries, including by 63% in India, in an aggressive attempt at countering growing competition from Google’s Rich Communication Services (RCS) and Apple’s upcoming foray into the segment.
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In India, at Rs 0.11 per conversation, WhatsApp’s new pricing for utility messaging is even cheaper than traditional SMS services at Rs 0.12-Rs 0.15, and also RCS, which is priced at Rs 0.20-Rs 0.25.
“Effective August 1, 2024, we are lowering rates to be competitive with alternative channels and encourage businesses to bring more end-to-end post-purchase customer journeys to WhatsApp,” the company said in a recent blogpost.
The reduced rates are, however, only applicable for one-time authentication (OTPs), order/delivery managements, account updates, payment reminders, or feedback surveys. For marketing and sales messages, WhatsApp has, in fact, increased the rate by 8% to Rs 0.78 per conversation to prevent the platform from becoming a spam channel. The revised pricing will be applicable effective October 1.
Experts said WhatsApp’s sharp price cut is likely to impact both messaging channels, especially RCS which is still emerging in India. Some say it could severely affect traditional SMS services with WhatsApp already capturing a major share of the corporate messaging market. Others believe that banks and government departments will continue to use SMS for
