WhatsApp has emerged as one of the most popular messaging platforms globally, with over 2.24 billion monthly users. As a result, the WhatsApp Business Platform has become a natural choice for businesses seeking to provide customer service.

Meta wants to empower businesses on WhatsApp with more flexible ways to engage businesses for different reasons.

In essence, the new pricing structure maintains the charges for conversations between businesses and customers. However, there will be changes in how businesses are billed, based on the different conversation categories.

This blog post aims to unpack the upcoming conversation-based pricing updates on WhatsApp, set to take effect on 1 June 2023. We will delve into the details of the updates, providing clarity on the implications for businesses utilizing the WhatsApp Business API platform.

User-initiated vs. Business-initiated conversations until 31 May 2023

Until 31 May 2023, WhatsApp supports two types of customer conversations:

• Businesses-initiated messages: Template messages sent by businesses on WhatsApp.

• User-initiated messages: Conversations started by a customer on WhatsApp.

New WhatsApp Conversation categories from 1 June 2023

As of 1 June 2023, there are 3 new business-initiated conversation categories and 1 user-initiated conversation types on WhatsApp:

• Utility conversations: Businesses initiate these conversations with a specific purpose in mind within a predefined transaction, focusing on tasks such as confirming, suspending, or altering a transaction or subscription.

• Authentication conversations: Businesses initiate these conversations to assist in user authentication by utilizing one-time passwords during sign-up, login, verification, and account recovery processes.

• Marketing conversations: These conversations involve business-initiated template messages that offer versatile functionality, including the announcement of promotions, sending welcome messages, providing updates, and making requests.

• Service conversations: All conversations initiated by users on WhatsApp fall under the category of service conversations.

Why are their new conversation categories?

WhatsApp is striving to offer businesses new avenues for engaging and supporting customers, while also providing opportunities for marketing initiatives. The template message approval process remains the same.

How will the new Template Categories be charged?

Category-based charges apply to conversations based on the template message. When you send a template message, it activates a conversation in that specific category, resulting in the associated charge.

However, if you send a second template message of the same category within an ongoing conversation (e.g., two marketing template messages in the same conversation window), no additional charge will be applied. If the second template message belongs to a different category than the first one, it will open a new conversation window, and additional charges will apply thereafter.

Rates for template messages will differ by region. Contact your Cue account manager to learn more or book a call with one of our sales staff if you are interested in using the WhatsApp Business API for your business.

Service Conversations

Service conversations only start when there is no other conversation type active and the business responds with a free-form message within the 24-hour customer service window.

If a business replies with a template message, a new conversation will be started and charged by that category.

Get in touch with us to learn more about the rates for service conversations.

Free Entry Point Conversations

Conversations initiated through free entry points enable businesses to send template messages of any type without incurring charges. It is also important to note that no other type of conversation can take place while a free entry point conversation is active.

WhatsApp has also extended the conversation window for free entry-point conversations from 24 hours to 72 hours.

What about Free Tier Conversations?

WhatsApp allows businesses to engage in 1,000 free user-initiated conversations per month. This remains true, however, business-initiated messages are no longer included in the free tier.

How do I prepare my business?

If you are currently using the WhatsApp Business API, your solution provider should have already commenced the migration process for template message categories.

Utility Templates

Confirm or suspend transactions

Change or update transaction

Account, billing,
or payment notification

Authentication Templates

Marketing Templates

Promotional offers

Welcoming and closing messages

Welcoming and closing messages

Updates, invitations, newsletters

Requests to respond
or complete a new transaction

The Cue Conclusion

Starting from 1 June 2023, all businesses on WhatsApp will be subject to new conversation rates. The free tier conversations will now exclusively cover service conversations, and businesses will have the option for multiple conversation windows.

The new conversation-based pricing aims to provide businesses with enhanced flexibility and functionality in their customer engagements on WhatsApp. Get in touch with our sales team to find out how we can help your business meet customers on WhatsApp.