WhatsApp Cloud API: Faster Business Adoption

WhatsApp Launches Cloud-Based Business API Beta

WhatsApp is initiating beta testing for a new, cloud-hosted version of its WhatsApp Business API. This infrastructure is provided by its parent company, Facebook. The transition to a cloud-based system is projected to significantly reduce API integration setup time, decreasing it from weeks to mere minutes, according to the company.

Revenue Generation Through the Business API

Over the past two years, WhatsApp has been actively expanding its Business API as a key revenue stream for the messaging application. Businesses currently pay a per-message fee, with costs varying based on message volume and geographic location.

Currently, tens of thousands of larger businesses utilize the existing API, including prominent brands such as Vodafone, Coppel, Sears Mexico, BMW, KLM Royal Dutch Airlines, Iberia Airlines, Itau Brazil, iFood, and Bank Mandiri.

Continued Support for Existing API

The previously available version of the API will remain supported, and WhatsApp has no immediate plans to mandate a migration to the new cloud-based system. Both APIs are offered without usage fees.

Integration with Solutions Providers

Businesses typically integrate the WhatsApp Business API through solutions providers like Zendesk or Twilio. These providers facilitate the connection between the API and the customer’s existing systems.

WhatsApp often functions as one component within a broader customer communication strategy, alongside channels like SMS, other messaging applications, and email.

Historically, this integration process has been time-consuming, potentially taking weeks or even a month to complete.

Accelerated Online Shopping and the Need for Speed

The recent acceleration of online shopping, particularly due to the pandemic, has increased the demand for rapid system deployment. Companies are seeking quicker solutions for getting operational on new platforms.

Simplified Technical Integration

The new cloud-based API is designed to streamline the integration process, offering a faster and more accessible technical experience.

Initial Beta Testers

The initial beta program includes approximately two dozen of WhatsApp’s existing solution provider partners, including Zendesk (U.S.), Take (Brazil), and MessageBird (E.U.).

Zendesk’s Perspective

“The Cloud API represents a significant advancement in simplifying WhatsApp usage for both service providers and our clients,” stated Mike Gozzo, VP of Product at Zendesk. “Eliminating the need for hosting WhatsApp Clients will enable us to concentrate on supporting the API’s extensive feature set.”

Shifting Communication Preferences

This launch coincides with a shift in how individuals connect with businesses. Currently, over 175 million WhatsApp users message a business daily, a trend that is expanding, especially in markets like India, Brazil, and Indonesia.

WhatsApp is observing a growing consumer preference for messaging over traditional phone systems and hold times, which are often perceived as frustrating and costly for businesses.

User Preference for Messaging

A WhatsApp survey conducted last year revealed a strong preference for messaging among its users. In several key countries, 75% of users expressed a desire to communicate with businesses via messaging.

Furthermore, 68% indicated they were “more likely” to engage in business or make a purchase from companies accessible through messaging.

Click-to-Chat Ads

WhatsApp also generates revenue through click-to-chat advertisements appearing on Facebook’s News Feed and Instagram, enabling consumers to initiate conversations with businesses directly on WhatsApp.

The WhatsApp Business App

For small businesses, WhatsApp offers the WhatsApp Business App, allowing local shops to establish an online presence and connect with customers. This app has reached 50 million users globally since its 2018 launch.

Previous API Improvements

Prior to the Cloud API launch, WhatsApp had been implementing other API enhancements, including faster response times for inbound messages and support for diverse message types, such as out-of-stock notifications for opted-in users.

Transparency and Control for Users

Customers receiving communications from businesses will see an informational message at the top of their conversation, clarifying that this is a distinct experience from messaging friends and family (which benefits from end-to-end encryption).

Users can terminate communications through various methods, such as texting “stop” to the business or adjusting settings on the company’s website. Blocking the business within the app is also a readily available option.

Limited Beta and Future Availability

The Cloud API is currently in a limited beta phase with select partners, who are beginning to onboard their initial clients.

WhatsApp intends to broaden access to the API for other solutions providers and businesses directly starting in 2022.