How Will WhatsApp Make Money?

Facebook Inc FB's acquisition of WhatsApp messenger has become a hot topic for investors wondering just how the company will leverage the app and increase its bottom line.

While Facebook CEO Mark Zuckerberg has been relatively tight-lipped about his plans for the messaging service, the app's latest user numbers suggest the public may not have to wait long to learn his future goals for the service.

Huge Numbers

WhatsApp recently announced it had surpassed 1 billion users, a major milestone for such a new service.

The company revealed that 42 billion messages are sent daily and over 1 billion groups have been created. The impressive numbers are more than just a positive for the service, they are a milestone for Zuckerberg as well, who previously remarked that Facebook would start to focus more on monetization once the app had reached 1 billion users.

Related Link: WhatsApp Crosses 1 Billion Users

What Will Monetization Look Like?

Facebook's plans for WhatsApp's monetization appeared to be materializing at the beginning of January. The firm announced that it would not charge a subscription fee, and instead would focus on creating partnerships with corporate clients.

The service has already started to integrate business functions into its capabilities— ridesharing firm Uber allows users to book their ride using the app. This idea could expand to allow companies to conduct customer service communications, fulfill orders and book reservations using WhatsApp.

What About Ads?

Facebook hasn't commented on whether it will make money from advertisements within the app, but most expect that will not be the case. While mobile advertising has become a huge business, banner ads within applications are often a turn-off for customers, and Facebook is likely to continue focusing on growth and usability over money-making for the time being.

Image Credit: Public Domain
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