Earlier this week, Meta launched a new trial version of the Novi digital wallet – this time, for use via the Whatsapp mobile app. Users in USA and Guatemala can now send and receive money right in their WhatsApp mobile app.
You might be wondering what the Novi app even is. Well, remember when Facebook announced the rebranding, the Metaverse, and how it will touch every product they build? It turns out this could be a part of it all.
Novi is a digital wallet that should enable people to send and receive money internationally without leaving their homes. There are no fees, and the process doesn’t last long. It uses blockchain technology and a digital currency called USDP – a cryptocurrency of Paxos – a coin that uses the Etherium blockchain technology and is attached to the U.S. dollar. So, 1 USDP = 1 USD.
According to Facebook, or Meta, if you will, Novi has been developed to enable fee-free, cross-country money transfers. If you decide to sign up, you will need a valid government ID and a video selfie. Then, you can add money to the account using your debit card and your contact list.
Things you should know
Novi is officially a regulated financial company from Facebook, but also has built-in protection against fraud and constant monitoring for suspicious activity. Yet, some regulators are hesitant to give Facebook more power and influence, especially considering the amount of user data they have access to.
For them, it seems that adding payment options is a step too far. That’s why Novi acts independently from Meta and wants to distance itself as much as possible, to maximize acceptance. Using Novi on Whatsapp won’t change Whatsapp’s privacy settings and should be completely safe, according to Facebook.