The messaging platform WhatsApp; supported by meta, earlier called Facebook; is now being used by some Novi users in the US to send and receive money using Meta’s cryptocurrency wallet. At present, the feature is only available to a small number of consumers. It is likely to be expanded in the near future.
Novi wallet was launched back in October this year in the US and Guatemala. Whilst the WhatsApp crypto payments feature is not yet available in Guatemala or the US, the Novi digital wallet is Meta’s digital wallet.
Novi describes itself as a digital wallet that helps users send and receive money instantly and securely, as well as move money across borders without fees for everyday needs, monthly expenses and special occasions.
Stephane Kasriel, CEO of Novi, has said the pilot programme will allow the company to test and determine which features and functions people value the most. It will also allow them to focus on further improving those features.
In a series of tweets late Wednesday, Kasriel promised that sending and receiving money using WhatsApp would be “as easy as sending a message”. The Novi mobile-payment app, which will appear directly in people’s chats, enables people to send money securely, instantly, and for free. People can coordinate money transfers directly in WhatsApp, he said.
Novi’s CEO also stated that there is still a long way to go in its pilot journey. The company has started a pilot in one country and will decide on extending it after receiving feedback from users.
Novi converts money added to the app to USDP (Pax Dollar). The math is clear on the app – 1 USDP is equal to 1 US dollar. Pax Dollar is a cryptocurrency created in 2018 whose value is pegged to the US dollar. A regulated financial institution, Paxos Trust Company, issued it.
Pax Dollar is a Stablecoin that allows users to exchange US dollars for tokens. The token itself is backed by the USD via accounts held at US depository institutions. The current price is $0.99 per PAX. Pax Dollars always maintain a 1:1 value relationship with the US dollar, so 1 USDP token is always worth 1 USD in your wallet.
The cryptocurrency exchange Coinbase and Novi are reportedly working on custody services to ensure the safety of their customers’ funds. Meta Platforms has been working on this feature for several months.
