WhatsApp, founded in 2009 and sold to Facebook for $19 billion in 2014, has more than 2 billion users. AFP
WhatsApp, founded in 2009 and sold to Facebook for $19 billion in 2014, has more than 2 billion users. AFP
WhatsApp, founded in 2009 and sold to Facebook for $19 billion in 2014, has more than 2 billion users. AFP
WhatsApp, founded in 2009 and sold to Facebook for $19 billion in 2014, has more than 2 billion users. AFP

All you need to know about WhatsApp's new cart shopping service


Alkesh Sharma
  • English
  • Arabic

WhatsApp launched a feature on Tuesday that allows its more than 2 billion users to shop through the messaging platform and enables merchants to track orders and inquiries.

WhatsApp Cart was introduced globally after the company piloted the service with select businesses. The Facebook-owned instant messaging app expects its new feature to have traction during the holiday season this month, the company said.

Here is how the new shopping platform will work and potentially disrupt the contactless shopping ecosystem globally.

What is WhatsApp cart?

WhatsApp cart is useful when messaging businesses that typically sell multiple items at once, like a local restaurant or a clothing store. With cart, people can browse a catalogue, select multiple products and send the order as one message to the business. This will also make it simpler for businesses to track orders, inquiries, manage requests from customers and close sales.

How to place an order using cart?

Users can go to the business profile of the company and tap on the shopping button icon to access the catalogue. After accessing the catalogue, they can use the "message business" option to start a conversation. They can browse through a list of products from different categories and order by clicking on the "add to cart" button.

How to edit the cart?

As with online shopping, cart users can at anytime see the items they have added by clicking on "view cart". They can click "add more" to navigate back to the catalogue to continue adding more products. They can also edit the quantity for each product added to the cart.

Once the cart is successfully updated, users can send it to the seller as a WhatsApp message. They can also see the details of the order by tapping on the "view cart" button in their chat window with the seller.

How safe is WhatsApp messaging for business?

To attract more business users, WhatsApp is also offering free storage to host messages. WhatsApp ensures safety through its high level of encryption, the company said.

“Every private message sent using WhatsApp is secured with end-to-end encryption by default. Strong encryption acts like an unbreakable digital lock that keeps the information you send over WhatsApp secure, helping protect you from hackers and criminals.”

Messages are only kept on your phone, and no one in between can read your messages or listen to your calls, it said.

WhatsApp is committed to not using messages to boost target advertising.

How big is WhatsApp community?

WhatsApp was founded in 2009 and sold to Facebook for $19 billion in 2014. The messaging platform has more than 2 billion users, compared with 1.5 billion in 2018. Nearly 175 million of WhatsApp's 2 billion users interact with a business on the app every day, according to the company's chief operating officer, Matt Idema.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Fixtures

Friday Leganes v Alaves, 10.15pm; Valencia v Las Palmas, 12.15am

Saturday Celta Vigo v Real Sociedad, 8.15pm; Girona v Atletico Madrid, 10.15pm; Sevilla v Espanyol, 12.15am

Sunday Athletic Bilbao v Getafe, 8.15am; Barcelona v Real Betis, 10.15pm; Deportivo v Real Madrid, 12.15am

Monday Levante v Villarreal, 10.15pm; Malaga v Eibar, midnight

Charlotte Gainsbourg

Rest

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