Understanding the Latest Conversation-Based Pricing Model on WhatsApp Business Platform for Businesses

Table of Contents:

1. Introduction
2. WhatsApp's New Conversation-Based Pricing
3. New Conversation Categories
4. Charges Based on User's Country Code
5. Additional Changes to Conversation-Based Pricing
6. Free Tier and Trial of WhatsApp Business Platform
7. Conclusion

Introduction:

WhatsApp, one of the most popular messaging platforms in the world, has recently announced changes to its conversation-based pricing. The new pricing scheme will be effective from June 1, 2023, with different rates depending on the conversation category. This article aims to provide a detailed understanding of the new pricing scheme and its impact on businesses using the WhatsApp Business Platform.

The current pricing for the WhatsApp Business Platform charges businesses a flat rate per message sent to customers after the initial 24-hour window has elapsed. However, the new conversation-based pricing model, which will take effect on June 1, 2023, charges businesses per 24-hour conversation, with different rates depending on the conversation category. This means businesses will be charged for every 24 hours a conversation between them and a customer occurs.

Additionally, the new pricing model introduces three new conversation categories (utility, authentication, and marketing) that will be used to determine the charges for business-initiated conversations. In contrast, service conversations (user-initiated conversations that help customers resolve inquiries) will not be charged.

The new pricing model also includes changes to the free tier. From June 1, 2023, businesses will receive 1,000 free monthly user-initiated conversations. Each WhatsApp Business Account (WABA) will receive this free tier, independent of the number of phone numbers attached to the WABA. However, business-initiated conversations will no longer be included in the free tier, and the free conversation window will be refreshed monthly based on the timezone associated with the WABA.

WhatsApp's New Conversation-Based Pricing:

The new conversation-based pricing announced by WhatsApp is a significant change for businesses using the WhatsApp Business Platform. Under the new pricing scheme, businesses will be charged per 24-hour conversation. The charges will vary depending on the category of the conversation.

New Conversation Categories:

WhatsApp has introduced three new conversation categories for business-initiated conversations: utility, authentication, and marketing. 

Utility conversations facilitate specific, agreed-upon requests or transactions, such as post-purchase notifications and recurring billing statements. Businesses can use authentication conversations to authenticate users with one-time passcodes, potentially at multiple steps in the login process. Marketing conversations include promotions or offers, informational updates, or invitations for customers to respond/take action. Any conversation not qualifying as utility or authentication is categorized as a marketing conversation.

These new conversation categories will be used to determine the charges for business-initiated conversations. The costs for the conversations will be based on the variety of the template message used to initiate the conversation and the user's country code. Rates for business-initiated and user-initiated conversations will vary by country or region. They will be based on the country's currency, such as USD, AUD, EUR, GBP, IDR, and INR.

Introducing these new conversation categories aims to provide businesses with a better understanding of their conversation charges. By categorizing conversations and charging accordingly, businesses can make informed decisions on communicating with their customers using the WhatsApp Business Platform.

Charges Based on User's Country Code:

Rates for business-initiated and user-initiated conversations will vary by country or region. The rates will be based on the currency of the country, such as USD, AUD, EUR, GBP, IDR, and INR. The charges for conversations will depend on the user's country code.

Additional Changes to Conversation-Based Pricing:

WhatsApp has also made additional changes to conversation-based pricing. Effective March 1, 2023, businesses will not be charged for conversations when users message them using call-to-action buttons on Ads that Click on WhatsApp or Facebook Page call-to-action buttons. WhatsApp also extends the free conversation window from 24 to 72 hours, providing more free conversations when users message businesses through these entry points.

Free Tier and Trial of WhatsApp Business Platform:

Businesses using the WhatsApp Business Platform will continue receiving a trial with 1,000 free user-initiated conversations monthly. However, business-initiated conversations will no longer be included in the free tier. Each WhatsApp Business Account (WABA) will receive 1,000 free user-initiated conversations per month, irrespective of the number of phone numbers attached to the WABA. The free tier will be refreshed monthly based on the timezone associated with the WABA.

Here are some possible use cases for the updated conversation-based pricing for WhatsApp Business:

1. Utility Conversations: A customer uses a WhatsApp chat with their bank to check their account balance or to report a lost or stolen credit card. The bank responds with a template message that confirms the transaction and notifies the customer about any relevant fees or charges.
2. Authentication Conversations: A user attempts to log into a shopping website and receives a one-time passcode via WhatsApp to verify their identity. The website sends additional templates to confirm the order details and provide updates on shipping and delivery.
3. Marketing Conversations: A business sends a promotional message to customers about a limited-time sale or new product launch. Customers who opt into the message can respond with questions or feedback, and the business can use templates to provide more information or personalized offers.
4. Service Conversations: A customer contacts a telecom company to report an issue with their service. The company responds with a free-form message to troubleshoot the problem and resolve the issue within the 24-hour customer service window. If the issue requires additional follow-up, the company can use templates to provide more information or schedule a technician visit. You would be offered 1000 free service conversation per month.

WhatsApp Business Platform's conversation-based pricing varies by country or region, and charges are based on the user's country code. Here are the USD and INR rate cards for utility, marketing, authentication, and service conversations for conversation with Indian numbers, effective June 1, 2023:

Utility Conversations:

• USD: $0.0042 per conversation
• INR: Rs. 0.3082 per conversation

Marketing Conversations:

• USD: $0.0099 per conversation
• INR: Rs. 0.7265 per conversation

Authentication Conversations:

• USD: (TBD) per conversation
• INR: (TBD) per conversation

Service Conversations (First 1000 free every month):

• USD: $0.0040 per conversation 
• INR: Rs. 0.2906 per conversation

It's worth noting that these rates are subject to change and may vary based on the user's country code. Additionally, businesses can send multiple templates of the same category within an open conversation without incurring additional charges.

Conclusion:

The changes announced by WhatsApp to its conversation-based pricing scheme aim to provide clarity to businesses using the WhatsApp Business Platform. Introducing new conversation categories and charges based on the user's country code will help businesses understand their conversation charges better. The additional changes to conversation-based pricing, such as the extension of the free conversation window, will also benefit businesses. These changes will help businesses manage customer conversations using the WhatsApp Business Platform more effectively.

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