Visa (NYSE: V) announced Monday that its technology has been selected for a new peer-to-peer (P2P) payments system in Facebook's (NASDAQ:FB) popular WhatsApp messaging software in Brazil.
Visa did not specify financial terms or provide an estimate as to how the new arrangement would impact its business. But the move does expand Visa's reach in a massive market.
The finance sector giant will utilize Visa Direct, a real-time push payments solution, to power the WhatsApp transactions. As for security, it will implement a technology that is launching in conjunction with the WhatsApp Brazil rollout, Visa Cloud Tokenization.
Visa, in its press release trumpeting the new collaboration, said that worldwide transactions through Visa Direct have risen by 70% during the SARS-CoV-2 coronavirus outbreak.
The company added that the app's Brazilian users will "gradually" begin to see an option for the payments service on their screens. By adding a Visa card through the service, they will be able to send and receive payments via the app. Small-business owners in the country will also be able to access such services, as long as they set up a WhatsApp Business account first.
"Using our technology to open up avenues like WhatsApp for more people to shop and pay each other digitally is an incredibly powerful proposition that we're excited to bring to life," Visa wrote in the press release.
The shares of both parties involved in the deal were trading up on Tuesday morning. Visa was 1.6% higher, while Facebook had added 0.4%.