WhatsApp, the messaging app of Meta Platforms (FB), is allowing a limited number of people in the U.S. to send and receive money, within a chat using cryptocurrency.
The cryptocurrency payment offering is powered by Novi, the company’s digital wallet. Meanwhile, FB shares fell 0.22% to close at $329.82 on December 9.
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Meta Platforms is a U.S. company that develops applications, which allow people to connect with family and friends through mobile devices, personal computers, and other devices.
WhatsApp Payments
A limited number of people can make payments using the Pax cryptocurrency, which is a stablecoin pegged to the U.S. dollar. Novi will convert all the money deposited in a Novi account into Pax Dollars (USDP) to facilitate payment between users. (See Top Smart Score Stocks on TipRanks)
According to Novi’s website, sending payment on a WhatsApp chat is as simple as sending any other attachment on the messaging app. The payment feature can be accessed on both iOS and Android devices. Currently, there are no fees for sending or receiving money. There are also no limits on the number of times one can send or receive payments.
According to a Verge report, the new payment system is well-rooted in Meta Platforms’ cryptocurrency plans launched in 2019. As part of a collaboration with Libra, the tech giant affirmed plans to develop and launch a cryptocurrency pegged to a basket of low volatility assets.
Additionally, this is not the first time WhatsApp has made it possible for people to send and receive money. The Meta app currently offers payments using traditional fiat currencies in some parts of the world. It has already enabled the service in India and Brazil.
Stock Rating
Last week, UBS analyst Lloyd Walmsley reiterated a Buy rating on the stock and raised the price target to $425 from $416 (28.86% upside potential to current levels). According to the analyst, the company is well-positioned to benefit from the better operating performance and multiple expansions.
Consensus among analysts is a Strong Buy based on 29 Buys, and 6 Holds. The average Meta price target of $406.31 implies 23.19% upside potential to current levels.
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