WhatsApp makes service messaging free for businesses

WhatsApp has made enterprise messaging free to enhance AI chatbot conversations and increase its share in the growing market dominated in India by traditional SMS. This makes the platform the cheapest channel for businesses to communicate. 

"Starting November 1, 2024, service conversations are free for all businesses (free tier conversations are now unlimited instead of capped at 1,000). As a reminder, a customer service window must be open between you and a WhatsApp user before you can send the user a non-template message," the company said in a statement.

According to an ET report, service messages — such as customer queries on order status, flight ticket rescheduling, etc. — on WhatsApp were charged Rs.0.25 in India. SMS costs Rs.0.12-0.15, while Google’s RCS (rich communication services) is priced Rs. 0.20-0.25.

Although WhatsApp has become a primary messaging platform in the country, traditional SMS, still dominates about 90% of the enterprise communication market while WhatsApp has a 30% share. According to experts, the latest move could help WhatsApp attract two-way conversations, allows brands to spend on click-to-WhatsApp ads on other Meta platforms and generate user-stickiness amid AI adoption.

The platform will also be making utility templates free for businesses. "Starting April 1, 2025, utility templates sent within a customer service window are free for all businesses. Utility templates sent outside a customer service window will continue to be charged the utility rate. Suppose a WhatsApp user sends you a message asking when the package they ordered will be delivered. In that case, you can respond within the customer service window with a text message or utility template message, and neither incurs a charge."