Stephane Kasriel, head of Meta-owned digital wallet and fintech unit Novi, said in a Tweet that a limited number of U.S. Whatsapp users can now start sending and receiving money using Novi.

Novi relies on the stablecoin Pax Dollar (USDP). The fintech company started testing transfers between the United States and Guatemala in October 2021. This would allow Whatsapp users to access Novi and make transfers directly within the messaging app.

According to data from Business Insider: “P2P mobile payment transaction volume will reach $785.19 billion in 2021.”

In early november, developers first speculated about a Novi-WhatsApp link. The team discovered code in a WhatsApp beta version that would allow peer-to-peer (P2P) payments offering in the United States. This suggests that Meta — formerly Facebook — might embed Novi in all its payments offerings.

Novi was set to launch with the Meta-backed cryptocurrency Diem — formerly Libra. However, technical and regulatory issues made the project go for USDP instead. Still, David Marcus — former Novi head — said Meta still plans to launch Novi with Diem after the cryptocurrency gets approved by regulators.

The integration of Novi with WhatsApp could help Meta with the U.S. peer-to-peer payments and cryptos. According do to Insider Intelligence forecasts, US P2P payments are expected to reach $1 trillion in transaction volume by next year. This could allow WhatsApp to leverage it for its US user base. 

Cryptocurrencies are gaining wide adoption. In a Mastercard report earlier this year, the company found that 40% of global consumers planned to use cryptocurrencies in 2021. There was a tone of crypto-linked cards launched this year, and this might suggest that crypto payments might soon become mainstream. Meta could take advangate of this by using its WhatsApp service — to benefit from the crypto frenzy and push Diem to receive wider adoption on its launch.

The United States is making heavy regulations on cryptocurrencies and digital assets. Recently, executives from major crypto exchanges testified before Congress to defend the opportunities that cryptos could offer. With proper regulation, crypto payments could become safer.