Facebook Messaging Service WhatsApp Trials Letting Users Search For Businesses In-App

Facebook Inc’s FB messaging platform WhatsApp is testing out a new feature that will let users search for businesses within its app, Reuters reported on Wednesday, citing the company.

What Happened: The feature is being tested in São Paulo, Brazil, and the company is exploring India and Indonesia as the next destinations for expansion. The feature allows WhatsApp users to find shops and services through a directory in the app.

The feature is aimed at lifting the platform’s e-commerce capabilities. 

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"This could be ... the primary way that people start a commerce process in WhatsApp," the report said, citing Matt Idema, Facebook's vice president of business messaging.

WhatsApp is an advertisement-free platform and businesses rely on promoting their numbers on packaging or websites or use Facebook ads to draw customers. 

Why It Matters: The pilot feature would include thousands of businesses in Sao Paulo neighborhoods and will be spread across categories such as food, retail and local services across certain São Paulo neighborhoods, Reuters noted.

The feature comes at a time when Facebook is pushing in-app shopping across its apps. The social media giant had in June said Facebook's Shops feature would expand to WhatsApp in several countries. WhatsApp has also launched shopping tools like product catalogs and shopping carts. 

Price Action: Facebook shares closed 0.69% lower at $373.92 on Wednesday.

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