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WhatsApp is one of the most popular global messaging channels. With 2 billion active monthly users sending 100 million messages a day, it’s no surprise that businesses are more and more choosing to interact with their customers via WhatsApp. What better way to reach your audience than via the platform they are already using?
WhatsApp Business has become a big part of business-to-customer (B2C) communication with its fast message exchange over the internet through connected smartphones, laptops, desktop computers, tablets, and even smartwatches. It allows businesses to create meaningful one-on-one conversations with great customer journeys that lead to successful conversion.
According to Meta, 67% of respondents in Marketing report that WhatsApp led to higher conversion rates than alternative channels, and they want businesses to continue to focus on these high ROI marketing use cases.
Meta strives to deliver the ultimate customer journey on WhatsApp Business, allowing businesses to communicate with their customers on multiple touchpoints and for various use cases. To match its pricing to the use cases and experiences that WhatsApp Business Platform offers, Meta has created a pricing model that is both conversation- and template-based. Want to know what that means for your business? Let's take a look!
WhatsApp Business Platform in a Nutshell
Before diving into pricing model changes, it's important to know how WhatsApp Business Platform operates.
Meta recognizes two types of conversations on WhatsApp Business Platform: user-initiated conversations and business-initiated conversations. Business-initiated conversations always start with message templates, which need to be pre-approved by Meta.
A messaging session can start with both a user-initiated message, or a business-initiated message. When a messaging session starts, your business gets a 24-hour conversation window or Customer Care Window. As a business, you can keep interacting with customers if they also keep interacting with you up to 24h after the last customer interaction. Within the session, you can personalize and/or automate the conversation with templates, customer care employees, and chatbots at your wish (within reason, of course).
Once the conversation window closes, you will be able to send business-initiated messages (again) to restart the conversation with customers who present an active opt-in.
This setup allows the creation of a rich conversational experience that your customers want. Offer them service, support, and good deals in a personalized environment to boost your business.
WhatsApp Pricing Model
Conversation Categories
Meta recognizes four conversation categories to differentiate between the various use cases of WhatsApp Business:
Utility (business-initiated)
Authentication (business-initiated)
Marketing (business-initiated)
Service (user-initiated)
Because business-initiated conversations always start with message templates, the template used will determine the conversation type of the (24h) conversation window that opens after the initial contact. It is possible to switch between categories, starting a new 24-hour conversation window after the switch. Please note, that this will also be charged as such.
For example, if you send out a message to boost sales on your new products, you will probably use a marketing template, starting a marketing conversation. The marketing template fees apply here. Halfway through the conversation however, the need arises to use a utility message template. This will start a 24-hour utility conversation window, where the utility conversation and template fee applies.
Until June 1st, 2023, the WhatsApp Business pricing model is conversation-based. This means a fee will be charged per conversation (24h window) rather than per (Templated) message sent.
Businesses are charged once per 24-hour conversation, without additional charges for any additional messages from the business or the customer. The fees differ depending on who initiated the conversation.
New Pricing Model from June 2023
From June 1st, 2023, WhatsApp is introducing a new pricing model (and fees). This pricing model will also be conversation-based, but it adds more depth to the different conversations throughout the customer journey.
Meta strives to deliver the ultimate customer journey on WhatsApp Business, allowing businesses to communicate with their customers on multiple touchpoints and for various use cases. Whereas WhatsApp Business used to focus on service, they now also offer marketing messages, notifications, and many more exciting features.
But what is going to change? And how will it benefit your business?
Conversation Categories
To align the pricing model to its vision, Meta is introducing four conversation categories:
Utility (business-initiated)
Authentication (business-initiated)
Marketing (business-initiated)
Service (user-initiated)
Because business-initiated conversations always start with message templates, the template used will determine the conversation type of the (24h) conversation window. It is possible to switch between categories, starting a new 24-hour conversation window after the switch. Please note, that this will also be charged as such.
For example, if you send out a message to boost sales on your new products, you will probably use a Marketing template, starting a Marketing conversation. The Marketing conversation fees apply here. Halfway through the conversation however, the need arises to use a Utility message template. This will start a 24-hour Utility conversation window, where the Utility conversation fee applies.
Currently, Meta charges all conversation categories one fee per conversation. This will change in July 2025 - then Meta will charge per sent template regardless of the timeframe or conversation-time.
Let’s dive into the four categories and the fees attached to them:
Utility
Utility conversations are business-initiated conversations, often relating to a transaction. Think about purchase information, confirmations but also post-purchase notifications, and recurring billing statements to customers who have opted-in.
Currently, utility conversations are being charged per conversation. Starting July 2025, Meta will start charging utility conversations per templated message instead of per conversation. Each utility template will have a Meta fee. From April 1st 2025, however, utility templates sent within an open 24-hour customer service window will be free of Meta fees. The CM.com subscription, bundle, and pay-as-you-go pricing will stay the same before and after July 2025.
Important dates:
April 2025: Utility templates sent within the 24-hour customer service window are free of charge
July 2025: Utility conversations will be charged per template
Authentication
In authentication conversations, security is key. With authentication templates, you can authenticate users with One Time Passwords at multiple touchpoints during the login or verification process, such as account registration, account recovery, and other situations where the customer’s identity needs confirmation.
Authentication conversations are currently being charged per conversation. Starting July 2025, Meta will charge a fee for every authentication template sent.
Are you sending authentication templates in Egypt, Malaysia, Nigeria, Pakistan, Saudi Arabia, South Africa, and the United Arab Emirates while your business is not based in those countries? From February 1st, 2025, those countries will be subject to authentication-international rates. This means that there is a different template Meta fee if your business is eligible for authentication-international rates and based in another country. This is a continuation of the rollout that began in India and Indonesia earlier this year.
Important dates:
February 2025: Specific countries will be subject to international authentication-rates
July 2025: Authentication conversations will be charged per template
Marketing
As the name suggests, Marketing conversations are business-initiated conversations to market a product or service to customers. You can send your opted-in customers relevant offers, good deals, or information about product restocking.
Good-to-know: Any business-initiated conversation that does not qualify as an Authentication or Utility conversation, will fall under this category.
The rates for marketing conversations are currently based on business-initiated conversation fees. Similar to utility and authentication, this will change in July 2025 to a fee per template pricing model.
Important date:
July 2025: Marketing conversations will be charged per marketing template
Service
Service conversations are all conversations that are user-initiated, often to resolve a customer inquiry. The key factor here is that the customer or user initiates initial contact.
The fees for service conversations are currently based on user-initiated conversation fees, but starting November first, 2024, that fee expires.
Important date:
November 2024: There will be no extra meta fee for customer-initiated conversations
You will still need to reply within the 24-hour customer service window though. This means that you will only pay for the CM.com subscriptions, messages bundles or pay-as-you-go plan.
Impact for You
So what impact does the pricing model have on your business?
The Customer Support Heroes
Is your customer support set up to respond to incoming messages from your customers, helping them in their time of need? Then you will be delighted to hear that after November 2024, there will no longer be a fee for customer-initiated conversations! Continue to offer the support your customers need and create the optimal customer experience.
The Marketing Magic Managers
Are you in marketing? Do you send your customers updates and news about your new products and services? The rates for your business-initiated marketing conversations will, unfortunately, increase compared to before once you start paying per template.
WhatsApp marketing conversations have a higher ROI than any other channel though, and even though the rates go up, they don’t differ much or at all form other marketing messaging channels.
The Safety Squad
Do you use WhatsApp mainly for its authentication features? Then you'll start paying per sent template in 2025, and you'll be subject to international authentication-rates if you're authenticating users in Egypt, Malaysia, Nigeria, Pakistan, Saudi Arabia, South Africa, and the United Arab Emirates if your business is not also located there.
A Little Bit of Everything
Are you using WhatsApp Business Platform at multiple touchpoints in your customer journey? Then first, congratulations! This is the exact use case that Meta envisioned and optimized their platform for. You’ll benefit greatly from all its features!
Your marketing, utility, and authentication conversation rates will increase slightly in 2025, as you'll start paying per template instead of per conversation, regardless of the 24-hour conversation window. So will it definitely cost you more? That's hard to say. It is greatly dependent on how you use and implement WhatsApp Business into your communication strategy.
WhatsApp Business Pricing at CM.com
CM.com will continue to invoice Meta fees on behalf of WhatsApp directly to you. CM.com pricing will still apply. Want to know more about WhatsApp pricing and the impact it has on your specific use case? Don’t hesitate to get in touch with us via the button below or contact your account manager.
+971 4 589 6035
