How Small Businesses Use WhatsApp and Where the Platform Makes Its Money

In today's digital age, communication platforms have become critical to the success of small businesses. Among the various tools available, WhatsApp stands out as a powerful communication tool, offering a range of features that help businesses connect with customers, manage inquiries, and even facilitate sales. But while small businesses are leveraging WhatsApp to stay connected, a key question arises: how does WhatsApp itself make money? This article explores how small businesses use WhatsApp and delves into the platform's monetization strategies.

How Small Businesses Use WhatsApp

WhatsApp's popularity among small businesses is no surprise. As a free and widely used messaging app, it offers a cost-effective means of communication and has become an essential tool for business operations. Here are a few ways small businesses are harnessing the power of WhatsApp:

Customer Support

For many small businesses, customer support is a crucial part of their operations. WhatsApp offers a direct, real-time communication channel that allows businesses to respond to customer queries efficiently. Whether it's providing answers to product-related questions, troubleshooting issues, or assisting with order tracking, WhatsApp enables businesses to offer personalized customer support at scale. The ease of use and immediate response time makes it a preferred channel for customers.

Marketing and Promotions

WhatsApp provides small businesses with a unique opportunity to engage customers through personalized marketing. Many businesses use WhatsApp to send promotional messages, updates, and exclusive offers directly to customers. The personal nature of the platform allows businesses to build relationships with their audience, making promotions feel more direct and engaging than traditional email marketing.

Sales and Orders

WhatsApp also plays a significant role in driving sales for small businesses. Many small e-commerce businesses have embraced WhatsApp as a platform for receiving orders, negotiating prices, and managing the purchasing process. With features like catalog sharing, businesses can display their products, and customers can easily inquire about prices, availability, and delivery options—all without leaving the app. This seamless integration between communication and sales helps businesses streamline their operations and increase sales.

Internal Communication and Team Collaboration

In addition to customer-facing uses, WhatsApp is also a valuable tool for internal communication within small businesses. Teams can use the app for quick discussions, coordinating tasks, or sharing updates. For businesses with limited staff or those operating in multiple locations, WhatsApp offers a low-cost alternative to more complex communication tools like email or project management software.

Where WhatsApp Gets Money From?

While small businesses are benefiting from WhatsApp's growing set of features, the platform itself needs a sustainable revenue model. Over the years, WhatsApp has evolved from a simple messaging app into a multifaceted communication tool, but its monetization strategy has remained relatively subtle compared to other social media giants. So, how does WhatsApp actually generate revenue? This topic is often discussed in the business newsletter Revenue Memo, which analyzes how major digital platforms build long-term profitability.

Business Accounts and WhatsApp Business API

WhatsApp’s primary source of revenue comes from its business accounts and the WhatsApp Business API. While the personal version of WhatsApp remains free, businesses get access to specialized tools under WhatsApp Business—features like business profiles, automated responses, and categorized chats.

The WhatsApp Business API is particularly important. It’s designed for medium and large companies that need automation and large-scale communication. This is where monetization happens: businesses using the API must pay per message, with prices varying by country. As highlighted by the business newsletter Revenue Memo, this pay-per-message model is a major driver of WhatsApp’s current revenue.

WhatsApp Payments

Another emerging revenue stream is WhatsApp Payments, a feature that allows users to send and receive money inside the app. Initially launched in India, it is expected to expand globally. Once widely adopted, WhatsApp could generate significant income through transaction fees. According to insights from the business newsletter Revenue Memo, even small fees collected at scale could transform WhatsApp into a powerful payments platform.

Ads in WhatsApp Status

WhatsApp has avoided placing ads directly in chats, but WhatsApp Status remains a strong candidate for future monetization. Status, similar to Instagram or Facebook Stories, is one of the most frequently used features on the platform. Introducing ads here would create a new revenue channel without disrupting private conversations. Analysts quoted in the business newsletter Revenue Memo suggest that Status ads could eventually become one of WhatsApp’s highest-earning features.

Integration with Facebook’s Advertising System

WhatsApp’s parent company, Meta, is increasingly integrating WhatsApp with Facebook and Instagram’s advertising ecosystem. Businesses can already run ads that lead users directly into a WhatsApp chat, creating a smooth transition from marketing to communication.

This deeper integration encourages businesses to invest more in targeted ads, strengthening Meta’s broader revenue strategy. As explained in the business newsletter Revenue Memo, this approach positions WhatsApp as a key part of Meta’s advertising engine while maintaining the app’s clean user experience.

The Business Newsletter Revenue Memo

Entrepreneurs, investors, business operators, and marketers rely on the business newsletter Revenue Memo to stay ahead of the shifts shaping tech businesses. The newsletter breaks down how companies actually make money and gives readers a clear view of the tactics reshaping modern growth, business strategy, and revenue engines.

Each issue provides an insightful overview of a major company. Whether you're using WhatsApp to modernize customer engagement or testing new distribution channels, Revenue Memo helps you understand what matters, why it matters, and how to act on it.

Subscribing to Revenue Memo helps you formulate a sharper business strategy. And get a steady pulse on the platforms, tools, and business models rewriting the rules of the tech world. 

Conclusion

WhatsApp has proven to be an invaluable tool for small businesses, helping them connect with customers, streamline operations, and boost sales. The platform’s versatility makes it an essential part of the digital landscape for businesses of all sizes. As WhatsApp continues to evolve, its monetization strategies, including business accounts, payments, and potential advertising features, will likely contribute to its sustainability as a business tool.

For business owners seeking the latest strategies and insights on leveraging tools like WhatsApp, subscribing to the business newsletter Revenue Memo is a great way to stay ahead of the curve. By staying informed and adapting to new trends, small businesses can maximize the value of WhatsApp and other platforms to drive growth and success in an increasingly digital world.